My First Investing/Trading Books

When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

Sole Proprietorship, Partnership or Corporation?

To determine the right legal form for your business, you have to know the following:
  • Single Proprietorship (one person only)
    • Simplest form of business organization. The establishment, management and operations of the business is not governed by a special law unlike corporations.
    • Has unlimited liability in the sense that creditors may proceed not only against his business assets and property but also after his own personal assets and properties. In short, there's no distinction between his personal affairs and his business transactions.
    • Required to register with DTI (Department of Trade & Industry)
    • Usual tax liabilities:
      1. Individual Income Tax 
      2. VAT if VAT registered (Gross sales is P1,919,500 or more) 
      3. Percentage tax if non-VAT (3% of gross sales)
      4. Withholding tax if any

  •  Partnership (2 or more persons)
    • Unlike single proprietorship, a partnership has a judicial personality separate and distinct that from each of the partners. 
    •  However, as a general rule, the liability of the partners is also unlimited except for limited partnerships where the law allows the limitation of the liability of certain partners to the extent of their capital contribution.
    • Can be dissolved anytime as long as there is no breach of contract or prejudicial to third parties. Remaining partners can form a new partnership with less or more partners.
    • Governed by the Civil Code of the Philippines Art. 1767-1867
    • Required to register with SEC (Securities & Exchange Commission)
    • Usual tax liabilities: 
      1. Individual Income Tax (Partners not the Partnership)

  • Corporation (5 to 15. Not more than 15)
    • Like partnership, a corporation has a judicial personality separate and distinct that from the owners. It is an artificial being created having the right of succession and the powers, attributes and properties authorized by law or incident to its existence.
    • Liability to third parties is limited only to the extent of the stockholder's capital contribution.
    • Governed by the Corporation Code of the Philippines
    • A lot of requirements such as by-laws, affidavit for the paid-up capital etc.
    • Usual tax liabilities:
      1. Corporate Tax (30%)
      2. Withholding Tax
      3. VAT or Percentage Tax
      4. Capital Gains Tax if any

Another type is cooperative. It has many requirements like corporation and the primary objective of a cooperative is to help improve the quality of life of it's members (RA 9520).

So what legal form of business will you register?

Sources: Corporation Code, Civil Code, Chan Robles


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