Forms of Business Organization (according to Ownership)

1. SOLE PROPRIETORSHIP

1.1. - It have only one owner of the business.

1.2. Advantages: ○ Owners have the all profits generated by the business. ○ It is the simplest form of ownership. ○ The owner have the full power run the business. Disadvantages: ○ The equity is limited on the Owner's personal resources. ○ The Owner is responbility for all expenses of the business.

1.3. To start a business: ○ Go to DTI - register business name. ○ Get Barangay Clearance in Barangay Hall. ○ Get Mayor's Permit in Municipal Hall. ○ Get Certificate for Registration in BIR.

2. PARTNERSHIP

2.1. - Own by 2 or more owners.

2.2. Advantages: ○ More capital for the business since the business have 2 or more owners. ○ The owners can share the profits. Disadvantages: ○ The profit is not 100% yours since you all have to divide it. ○ It ends when your partner decides to end it.

2.3. To start a business: ○ Go to SEC - register business name. ○ Get Barangay Clearance in Barangay Hall. ○ Get Mayor's Permit in Municipal Hall. ○ Get Certificate for Registration in BIR.

3. CORPORATION

3.1. New Topic- Own at least 5 owners or what we called "Shareholders".

3.2. Advantages: ○ Shareholders have unlimited resources in financing the business. ○ It can't terminate easily. Disadvantages: ○ Establishing a corporation is a lot of costs. ○ Subject for double taxation.

3.3. To start a business: ○ Go to SEC - register business name. ○ Get Barangay Clearance in Barangay Hall. ○ Get Mayor's Permit in Municipal Hall. ○ Get Certificate for Registration in BIR.