Photo from Unsplash | bruce mars
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
A sole proprietorship is a form of business organization with only one proprietary owner, a single individual who conducts business under his own name or a business name. (p.3, Commentaries and Jurisprudence on the Revised Corporation Code of the Philippines, Aquino, 2020)
A sole proprietorship is a form of business organization with only one proprietary owner, a single individual who conducts business under his own name or a business name. (p.3, Commentaries and Jurisprudence on the Revised Corporation Code of the Philippines, Aquino, 2020)
Easy to set up – A single proprietorship is the simplest form of business organization in the Philippines. Since only one person owns a sole proprietorship, it is the easiest and the least expensive business organization to set up, as the strict laws and regulations imposed upon corporations and partnerships are not binding to a sole proprietorship.
No separate personality – A sole proprietorship does not have a personality separate and distinct from the personality of the owner of the enterprise.
Jurisprudence says:
“A sole proprietorship does not possess a juridical personality separate and distinct from the personality of the owner of the enterprise. The law merely recognizes the existence of a sole proprietorship as a form of business organization conducted for profit by a single individual and requires its proprietor or owner to secure licenses and permits, register its business name, and pay taxes to the national government. The law does not vest a separate legal personality on the sole proprietorship or empower it to file or defend an action in court.” (Stanley Fine Furniture v. Victor Gallano, G.R. No. 190486, November 26, 2014)
Sole liability – A sole proprietor has unlimited liability in the sense that creditors of his business may proceed not only against the assets and property of his business but after his own personal assets and property. Creditors with whom a sole proprietor had incurred personal debts may also run after the assets and property of his sole proprietorship.
Related Article/s:
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
All rights reserved.