Starting a business means choosing the correct form of organization. Of all the forms, you know what, corporation has the advantage over the rest. Perhaps you would probably ask “why incorporate and go through the hassles of extra paperwork and tax returns?”
Why incorporate? Ladies and gentlemen, incorporation is just another form of insurance. How? You may pay, what, monies at a range of Php10-Php100K depending on the size of your capitalization. Another Php10k-50K for the permits and BIR registration. But those modest premiums isolate and protect all the personal assets you have worked so hard over the years to accumulate.
Every business book seems to dwell on the relative advantages and disadvantages of a corporation over other forms of organization. From my viewpoint, however, it’s no contest. The limited liability benefits of the corporation overshadow other considerations.
Aside from the personal protection of a corporation, there are other advantages. These are —
1) tax deductible like for example fringes, including sick pay, medical and dental insurance, life insurance, and even travel and educational expenses.
2) workmen’s compensation is another big benefit.
3) unlike a partnership or proprietorship, a corporation continues after the death of its owner.
4) in case of death, no liquidation of the business is necessary.
5) do you want to bring in partners? selling corporate stock is the cleanest way to divide ownership.
6) expansion? only the corporation offers the flexibility to attract diverse types of financing.
So, the only way to obtain personal protection is by incorporating. It’s a MUST!