Question

How do you distinguish a partnership from a corporation? How do you distinguish a public partnership from a public corporation? If you were starting a business with a friend and only had a choice between a partnership and corporation, which would you choose and why?

Answer 1

Particulars	Corporation	Partnership
Definition	A legal entity which is separate from its owners	A business entity with individuals who share the risk ad benefits to the business
Formation	Formed under operational state laws with articles of Incorporation	An agreement amonth the members
Management	Run by Board of Directors	Run by the Partners
Liability	The stockholders are not held responsible in case of a fault,the corporation is	The partners share the liability and are directly responsible in case of fault
Dissolution	Stock holders approval or government approval	Decision of the partners
Raising Money	By sale of financial instrumnet like stocks and bonds	From current members, getting new member or a loan
Ownership	Stock holders	Partners
Startup Cost	is very expensive and includes administration fee, complex tax etc	Less costly and need licenses and permits

I strongly recommend to start Partnership business. A partnership is set up easier and has less paperwork, legal requirements, and tax obligations than a corporation.The main benefit of partnerships are

• The more partners you have, the increased amount of capital you can expect to add into your business
• More partners also mean that the management duties can be easily divided. This way, you don’t have to carry out all management tasks on your own.
• Different partners bring diversified experience and skills to a business. Therefore, there are higher chances of prosperity.