What is difference between sole proprietorship, partnership and Corporation?

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Ruhisingh · Answer 1 · 2021-12-06T12:19:55+0000

	Sole proprietorship	Partnership	Corporation
Ownership	A single owner	Two or more owners	Usually owned by many shareholders
Profit or losses	All profits go to the sole owner	Profits split equally, or by pre-determined terms amongst the owners	Dividends declared and given to shareholders
Liability	The owner has unlimited liability	Usually split amongst the owners based on the terms	Limited liability – individuals are not usually directly liable for activities within the corporation
Decision-making	All decisions for the firm are made by one owner	Owners in the partnership are responsible for the decisions	Board of director and shareholders
Tax	Owner is taxed on his personal income/profit from the company	Owners are taxed on their respective incomes	A corporation is taxed as a “person”