My concern is about a friend’s exclusive family business, which I presume is a partnership among their mother and themselves the siblings, engaged in rubber latex (dagta ng puno)which is harvested at regular intervals and which are sold (in solid lumps) to a rubber processing plant. They plan to be a corporation. I am not sure if they are planning to go into other areas like a rubber processing plant. Here are my questions, if, you may:
1. Since their business is purely and simply agricultural (with a product so in-demand), so simple to harvest and still so simple to sell to a ready buyer, is incorporation advisable? Under what circumstances may it be advisable to incorporate?
2. Just in case they incorporate, would the advantages outweigh the disadvantages in all aspects (decision-making-wise, tax-wise and complexity-wise due to legal requirements, etc.)?
3. Just in case they incorporate, what precautions should be borne in mind (family relation, employee-employer relationship, taxes and other legal requirements)?
4. If a family simple business incorporates, like my friend’s, what type of corporation would that be (they do not plan to share ownership with outsiders). Is it always a stock, or non-stock?
Thank you and more power, Sirs.