1. FORMS OF BUSINESS ORGANIZATION
Coop 002 – Cooperative Management
MARILYN P. GAOAT
Instructor

2. Number of Persons Required for Formation
Proprietorship
Partnership
Corporation
Only one person
At least two or more
At least five persons (natural and juridical persons can be stockholders at the same time.

3. Grant of Juridical Personality
Proprietorship
Partnership
Corporation
No separate juridical personality from owner but business name should be registered with the DTI
Mere agreement of partners can be a partnership. However, it is better if registered under the SEC
Must be registered with SEC

4. Registration Requirements for Documentation
Proprietorship
Partnership
Corporation
Application Form
Contract of Partnership
Articles of Incorporation, By-laws and Bank Statement

5. Capitalization Contributions
Proprietorship
Partnership
Corporation
Only owner contributes capital
Partners contribute cash or services
Stockholders pay for amount of share he wants to buy

6. Management Structure Only one person decides
Proprietorship
Partnership
Corporation
Only one person decides
Partners make a collective decision
Board of Directors make final decision

7. Voting Rights No voting rights as it concerns only one person
Proprietorship
Partnership
Corporation
No voting rights as it concerns only one person
Vote proportional to interest
Vote proportional to interest; proxy voting allowed

8. Liability Unlimited to owner
Proprietorship
Partnership
Corporation
Unlimited to owner
Unlimited as to partner except limited partnership
Limited until authorized capital

9. Taxability Income tax of owner Partners pay tax on share as partners
Proprietorship
Partnership
Corporation
Income tax of owner
Partners pay tax on share as partners
Profits is taxable; stockholders pay tax on dividends received

10. Effect of Death of Owner, Partner, Stockholder or Member
Proprietorship
Partnership
Corporation
End of business operations unless heirs can take over the business
Partnership automatically dissolves
Corporation continues; heirs inherit shares