Hi all,
I have decided to gather some advice here on how i should incorporate my business.
A little about me and the business
I'm a Singaporean who's looking to bring my friend's business into Philippines. It is a events based business that is not very capital intensive. Investment wise, i will be using approximately 7.5k USD for incorporation and acquisition of equipments which will be my main assets. My business does not need permanent employees so i will be hiring part timers.
I also have a filipino gf whom i've dated for 5 months. She's a smart woman whose working in a local bank. I also have a group of filipino friends whom i've met during my travel and can potentially help me to incorporate.
Sole proprietorship vs Domestic Corp
Hence, i will need to consider which type of structure to incorporate my business. Through my research, the following is what I understand of the different advantages(do correct/add on if i'm wrong):
Sole Proprietorship
1. Easy to start in terms of paperwork (less formalities)
2. Less regulatory requirements
3. I can potentially have full control over my earnings as i can decide my own remuneration (very important)
4. I will only be liable for personal tax (no corporation taxes)
Domestic corporation
1. More structured in terms of decision making
2. Limited liabilities
3. entities last forever
Currently, I am more geared towards sole proprietorship solely due to the reason I can have control over my own earnings(for corporations, as a director, i can only pay myself 10% of entity's income; a dividend payout will also benefit all the other shareholders who doesnt invest any money). I will register the company under my girlfriend but hold the bank account as well as have an agreeement with her to state that i'm loaning those equipments which i want to buy to her for the business. So in case if anything happens, I will get back both my money and equipments. \
Ultimately, I want to protect my interest as much as possible while maximising my returns from this business.
I will appreciate any advice you can provide on this. Thanks!