Alexandoy
VIP Contributor
One nephew asked about the type of business registration that which is the best for his plan of business. I explained the sole proprietorship which is the most common for a small business especially when you can handle the operation by yourself. A partnership is fun if all the partners will be pitching in to help in the business. But be aware that friction might develop which can lead to arguments.
A corporation is the best because it is a democratic way of handling business. You register a company in the SEC (securities and exchange commission) with the list of incorporators and directors of the board. The chairman is voted by the board and the president is selected by the chairman. The board is the supreme body that can change the president and even the chairman anytime. My nephew said that for a partnership having more than 5 members it looks like a corporation is more like it.
A corporation is the best because it is a democratic way of handling business. You register a company in the SEC (securities and exchange commission) with the list of incorporators and directors of the board. The chairman is voted by the board and the president is selected by the chairman. The board is the supreme body that can change the president and even the chairman anytime. My nephew said that for a partnership having more than 5 members it looks like a corporation is more like it.