FORMS OF BUSINESS ORGANIZATION Coop 002 Cooperative Management
FORMS OF BUSINESS ORGANIZATION Coop 002 – Cooperative Management MARILYN P. GAOAT Instructor
Number of Persons Required for Formation Proprietorship Only one person Partnership At least two or more Corporation At least five persons (natural and juridical persons can be stockholders at the same time.
Grant of Juridical Personality Proprietorship No separate juridical personality from owner but business name should be registered with the DTI Partnership Corporation Mere Must be agreement of registered partners can with SEC be a partnership. However, it is better if registered under the SEC
Registration Requirements for Documentation Proprietorship Application Form Partnership Contract of Partnership Corporation Articles of Incorporation, By-laws and Bank Statement
Capitalization Contributions Proprietorship Only owner contributes capital Partnership Partners contribute cash or services Corporation Stockholders pay for amount of share he wants to buy
Management Structure Proprietorship Only one person decides Partnership Partners make a collective decision Corporation Board of Directors make final decision
Voting Rights Proprietorship No voting rights as it concerns only one person Partnership Corporation Vote proportional to interest; proxy voting allowed
Liability Proprietorship Partnership Corporation Unlimited to owner Unlimited as to partner except limited partnership Limited until authorized capital
Taxability Proprietorship Income tax of owner Partnership Corporation Partners pay tax on share as partners Profits is taxable; stockholders pay tax on dividends received
Effect of Death of Owner, Partner, Stockholder or Member Proprietorship End of business operations unless heirs can take over the business Partnership automatically dissolves Corporation continues; heirs inherit shares
- Slides: 10