The Covid-19 has a substantial impact on almost every firm's performance. It disrupted ordinary operations and affected the impact assessment procedures used to measure corporate success in all aspects, including products or services given, work quality, staff productivity, and, most importantly, profitability. This study was conducted to determine the intensity of reputational risks of Micro, Small and Medium Service-based Businesses in Laguna and to verify the effects of these risks in their profitability as to gross profit, operating profit and net profit margins. Descriptive survey method design was handled. A total of 360 retrieved, validated and reliable modified questionnaires using stratified sampling technique. After careful analysis of the data gathered, it was found that there is a high risk in maintaining the company’s image and identity likewise very high risk in employee recognition. There is low to moderate performances in GPM, OPM and NPM from year 2020-2022. Additionally, public perception is significantly different when grouped among the number of employees while, employee engagement is significantly different when grouped among the year of business operation. There is significant variation of the business profits margins as to business capital, number of employees, and years of business operation. It is then recommended that service-based businesses may discover the core competencies of their services and build good reputation by improving employee-employer relationship, promotional strategies, and partnerships with governmental and non-governmental institutions.