for everyone here planin to put up a business, here are four forms that are most commonly used dito sa phil.: 1.
single proprrietorship, 2.
partnership, 3.
corporation, 4.
cooperatives. always remember that in forming a business, attention should be given to the legal form under which the business should be organized.....
i will try to explain each, how it is organized, n how it works. kaso, medyo from memory nalang, so if u see somthing wrong, feel free to say so, so we could correct the mistake....
sole proprietorshipit is a form of buisiness organization wher ther is only
one owner. thus all profits accrue to the owner. kaso, the owner does not enjoy limited liability as do the stockholders of a corporation. as manager of the firm, the owner cannot pay himself salaries and deduct these as expenses sa income statement - whatever funds he draws are treated as withdrawal of capital ing the financial statements. in computing the net taxable income, salaries to the owner are excluded from operating expenses.
now, advantages and disadvantages ng proprietorship....
advantage* less regulations ng govrnment sa operaring decisions...
*less conflict and disagreements in manner of management...
*mas madaling iincrease or decrease ang capital; hence, greater flexibility in decision making...
*mas ok for small businesses
*tax rate is much lower than that of the corporate or partnership form when net taxable income is less than 500k pesos...
disadvantages*unlimited liabilites of owner...
*limited ang capital...
*limited management expertise, esp. if there are no other managers...
partnershipas the name says, two or more persons bind thamselves to contribute money, property or industryto a common fund....with the intention of dividing the profits among themselves. tulad ng corporation, a partnership is formed under the law is a juridical person....separate and distinct from each of the partners. as a juridical person, pwede silng mag acquire and posses ng property and incur obligations. but unlike sa corp, the partners are liable pro rata to creditors of the partnership for its contractual debts....
management of the partnership is governed by the
partnership cantract and
partnership law.pag balak ng partnership taasan or babaan ang capital, partners hav to agree on the terms, unlike in a corp, where the sec must first approve it. the law prescribes na dapat imanage ng lahat ng partners ang firm if they fail to designate a managing partner.
advantages and disadvantages ng partnership....
advantages*appropriate for a small number of people who want to contribute capital or services to a business....
*increasing or decreasing of capital is much easier coz it is not strictly regulated by the sec
*it is the legally prescribed form of org for biznes that provide professional services: accounting firm, law firm, etc...
disadvantages*not that flexible in term of entry or exit of owners....
*transfer of shares may be done without the consent of co-stockholders while in a partnership, the exit of a partner dissolves the partnership....
*consent of existing partners are required in the admission of new partners... (which basically means the partnership is also disolved since a new one will be created)
*disagreements between the partners will most likely end up with the partnership being disolved. unlike in corporations where you have the option to just buy out the shares of a disgruntled shareholder, in partnerships, when there is a disgruntled partner, more often than not, it leads to disolution
[b
]different kinds of owners in a partnership..[/b]
general partner - one whose liabliity extends to his separate property (pag naluge ang company, at naliquidate, lahat ng gamit na nakapangalan sa kanya, e.g. jhouse, car, etc....pwedeng makuha)
limited partner - one whose liability is limited to his capital contribution
managing partner - one who manages the affairs of the partnership
industrial partner - one who contributes services only, i.e. labor, etc....
*article 1801 of the civil code provides that...."...if any one of them should oppose the acts of the others, the decision of the
majority shall prevail. in case of a tie, the matter shall be decided by the
partners owning the controlling interest."
*sa coporation saka ko na gawen, i think i need to rest, dami ko na nayoyosi eh....hehe 
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cooperatives can be considered non-stock closed corporations. how about just expanding corporation into the different kinds of corporation (the most basic is stock and non-stock, then from there closed and public corporations)
