• Sole or single proprietorship – Owned by one person called a sole proprietor. This is the easiest to organize. Since one owner has complete control, profits and losses flow directly to the owner and are taxed at individual rates. In case of dissolution or bankruptcy, however this kind of business is the most dangerous, since all creditors can run after all the personal properties of the sole proprietor. Registration is done with the Department of Trade and Industry (DTI)
• Partnership – Owned by two or more persons called partners who have contributed money, property or industry to a common fund with the intention of dividing the profits among themselves. Registration is done with the Securities and Exchange Commission (SEC).
• Corporation – a business established as an artificial person which existence is evidenced by its Articles of Incorporation and By-Laws registered with the SEC, Ownership is by the issuance of share of stocks.
• Cooperative – This 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% of the total capital of the organization. Members vote for the officers of the cooperative. Registration is done with the Cooperative Development Authority (CDA)
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