Options
There are two types of people in this world.
- Those who create options.
- Those who choose from the options
Which one are you?
For the past two weeks, I got hold of two books that made me postpone my filing of SEC registration papers.
The first was Elements of Business Fianance by G Miranda. The book talked about the different entities (ex. Partnerships, Corporations, Etc.) one can create in the Philippines. It also dabbled on management topics for proper financing and cost control.
I got this book because I wanted the right legal representation for the different types of services I offer. What would I need for my web hosting, web development and systems analysis and design services? Is it a sole proprietorship, partnership or a corporation? At first glance, I wanted to go for incorporation since it provided the most ways to raise funds (stocks) and offered protection (limited liability). However, the exorbitant tax rates are very discouraging. Besides all the monthly reports and annual financial statement paperwork, corporations are charged higher tax rates than other entities.
That’s why I got another book - How to Protect Your Property and Business from Lawsuits by J Lopez. This one examines the legal characteristics of the above-mentioned entities in detail.
As a primer to the Philippine Asset Protection Law, it shows other ways of protecting your business besides choosing the right legal entity. The book’s numerous examples and historical snippets illustrating possible legal business scenarios have been very helpful.
This weekend, I will scour bookstores for discussions on proper Financial Reporting and Taxation Laws in the Philippines. After protecting your company from industrial threats (competitors and what-not), one always has to stay on “the good side” (the government).
I’m very glad that there are Filipino books and writers like these out there. The books might have cost a mere Php500 ($US10), but compared to the knowledge I have acquired or the interview fee of attorneys or lawyers, these books are priceless. Though I do plan to team up with an attorney or lawyer someday, I need to learn some legal jargon first so that we can communicate properly and effectively.
As such, I feel like I never really left school (save the fact that I’m still at the Ateneo everyday for gym and business matters). There are so many things that I’m still learning (Doing Business Legally), re-learning (Economics, Statistics) and want to learn more about (Accounting). Learning makes my time worthwhile. The more that I learn, the more options I create.
