It is sometimes difficult to decide whether to register as a sole proprietor or organize a corporation with several incorporators. Fortunately, under Securities and Exchange Commission’s (SEC) Revised Corporation Code (RCC) or RA 11232, which took effect on 23 February 2019, there is now a middle ground between these two business set-ups. One Person Corporation (OPC) will be useful for those who would like to fully own their companies. OPC provides a certain limit in terms of assets and liabilities that a sole proprietorship cannot.
With all of the similarities that sole proprietorship and OPC might have, one will still wonder which is the better structure to register. Yes, both possess its own advantages and disadvantages but the decision comes down to your priorities. Here’s a quick rundown of comparison between Sole Proprietorship and One Person Corporation that may help you decide:
Are you still doubtful whether to be an incorporator or a sole proprietor? Do you want to learn more about the differences between these two business structures? Contact us! Book a FREE 30-minute consultation by sending an email to firstname.lastname@example.org or give us a call at +63 (02) 8540-9623.