There are four types of business enterprises that you can choose from. These are: sole proprietorship, partnership, corporation and cooperative. The basic features of each form of business are discussed in detail below:
1. Sole proprietorship
This kind of business is solely owned by an individual. This is the easiest to organize. In case of dissolution or bankruptcy, however,
this kind of business is the most dangerous, since your creditor can run after all your personal properties should anything go wrong.
Capital requirement depends on what kind of business you are going to pursue. It could either be capital intensive or no capital at all.
2. Partnership
This kind of business is owned by two or more partners. It could either be a professional or general partnership. Professional partnership involves the practice of one’s profession, like accountancy, law or engineering. General partnership involves any kind of business.
There is limited liability to creditors in case of bankruptcy or financial distress. The starting capital depends on the kind of business the
partners will pursue.
3. Corporation
This kind of business is owned by a minimum of five incorporators and several stockholders. Business is run by officers of the corporation. Members vote for the officers during the stockholders meeting. In case of bankruptcy or financial distress, liability to creditors is limited to capital contributions. The corporation is the safest form of business enterprise. To start a corporation, at least 25 percent of the capital is subscribed, and 25 percent is paid. For example, if you have P500,000.00 intended as capital, P125,000.00 shall be subscribed, and P31,250.00 of this shall be paid.
4. Cooperative
This kind of business is owned by a minimum of 15 individuals. It can have as many members as possible, but each member’s investment may not exceed 10 percent of the total capital of the organization. Members vote for the officers of the cooperative.
Are you an aspiring entrepreneur putting up a business or planning to have one?
This book is for you.
Having an idea for a business is easy but starting it is another story. The Handy Guide for Business Starters will show you the way in knowing what form of business your enterprise should take, where to have it registered, and what reports you need to submit monthly, quarterly, and yearly to the Bureau of Internal Revenue, Securities and Exchange Commission, and the Department of Trade and Industry.
Just as you need to get birth and baptismal certificates for your newborn children to make them legitimate, this book will help you know where to get the necessary permits and licenses needed for your business.
With sound accounting principles made easy and valuable tips on how to be a good financial steward of the resources God has given you, this book will help you lay the necessary foundations for your successful enterprise.
Grab your copies of HANDY GUIDE FOR BUSINESS STARTERS by Rowena B. Cequeña, CPA, MBA, available in paperback and e-book version at http://www.feastbooks.ph!
