If you are reading this article, there is a high probability that you have a side hustle. In fact, according to the Philippine Department of Labor and Employment, 1.5 million Filipinos work as freelancers. But the numbers could be much more. In a study by the University of the Philippines School of Labor and Industrial Relations, the Philippines ranks third in online freelancing, next to the United States and India.
So, what does it mean to be a freelancer? It’s not just about moonlighting or taking on gigs on the side. You don’t want to keep it at that. Freelancing is a way of life and comes with several legal obligations and responsibilities you might have overlooked.
Are you thinking of ditching your 9-to-5 job to embrace freelance work? Here are three good reasons you must register with tax and local authorities. Let us go through the benefits.
You legitimize your business
You will want to register as a self-employed taxpayer with the Bureau of Internal Revenue (BIR) if you’re going to professionalize and scale up. This registration is a big step toward your legitimacy as a freelancer. With this, you can open a bank account, receive business credit, and do business with large organizations and government institutions.
You build a solid reputation
As a freelancer, your reputation is essential to securing work. One of the best ways to build credibility is by registering with the BIR. By doing so, you can establish yourself as a reliable and trustworthy freelancer ready to take on new projects. It also shows potential clients that you are committed to providing quality service.
You gain access to more prominent clients
There are several benefits to registering, but the most obvious is that it is easier to be hired by big companies. Registering as a freelancer makes you eligible for bidding and other job postings. You’ll also be able to take on more complex projects, which can translate into greater earnings.
If you have been thinking about freelancing full-time but have been apprehensive about taking the plunge, don’t worry. It’s easy to manage your taxes, your reputation, and your ability to get financing when you register as a freelancer. With that, you can focus on the fun part: earning money on your terms with work that you enjoy.