Running an online business, more than just a hobby, is similar to any ordinary business where you need to issue official receipt to your buyers. The first step in this process is to register a business name with the Department of Trade and Industry or Securities & Exchange Commission.
You are also required to get a Mayor’s Permit and BIR registration.
As a start-up, you are encouraged to register (check section 4) under the Barangay Micro Business Enterprises Act of 2002. This will exempt you from income tax for income arising from the operations of the enterprise for 2 years and every renewable year thereafter (section 7).