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Help about forming an organization/business

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1 Help about forming an organization/business on Fri Jun 28, 2013 12:02 pm

macroblitz


Arresto Menor
Good day,

I want to seek for an advice, I want to form an organization who can make contracts and build or make computer related projects for clients such as companies, schools, and other businesses for additional organization funds. An organization that can give receipt of purchase and can give contracts. Also it is an organization that can help and give students from schools a seminar, training, and other computer related knowledge at a low cost.

other info about my org:
1) will have about 5-7 members
2) home office
3) will give seminars, training, and educate students related to computer topics at low cost

is it possible to make it a non-profit organization? is there any suggestions or advice? we want an organization that is cost-less and simplest to register in SEC, BIR, or BTI

thank you in advance



Last edited by macroblitz on Fri Jun 28, 2013 12:03 pm; edited 1 time in total (Reason for editing : additional info)

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tsi ming choi


Reclusion Perpetua
macroblitz wrote:
is it possible to make it a non-profit organization?

Not possible because your purpose is for earning profits by way of entering into a contract and build related projects to your clients, i assume that you are more inclined on software development.

macroblitz wrote:
is there any suggestions or advice? we want an organization that is cost-less and simplest to register in SEC, BIR, or BTI

Philippine law adopts 3 kinds of business establishments;

1. Sole proprietorship
2 Partnership, registered or unregistered;
3. Corporation, stock or non-stock.


Suggestions:

A.
You can form a sole proprietorship, you being the owner/employer and the members will be considered as your employees.

No registration to SEC is required
Less payment to BIR, you may consider the income as part of your gross compensation.

B.
Based on the facts, i would suggest to form a partnership considering that the members are the one giving seminars, training, thus they are considered as an industrial partner.

You may register it to SEC (registered partnership) or not (unregistered partnership) depending on your discretion.

For BIR purposes, registered partnership shall be treated as corporation in case of payment of income taxes.

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macroblitz


Arresto Menor
thanks a lot..

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Lunkan


Reclusion Perpetua
I don't know how Partnership company law is in the Philippines, but in some other countries you need to be very careful, because there '
can ANY of the partners make deals for the whole partnership company,
deals which ALL partners are responcible for,
and ANY of the partners can be demanded to pay WHOLE sum to people outside the partnership.
If so the one, who was forced to pay, can demand the others to pay their shares back to him, but if they don't/can't pay, then he don't get his money back, can be left with big depts too...

(E g a partner of my uncles-in-law took all the products they had in their TV shop and left only depts and the rental contract...)

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