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"For taxing purposes, partnership profits or losses are allocated directly to the partners, and there is no double taxation. . ." (Block & Hirt, p. 8).
Corporations are businesses made up of a number of shareholders with limited liability, whose numbers can reach into the millions. "The corporation is unique ? it is a legal entity unto itself...
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"The corporation is unique ? it is a legal entity unto itself. Thus the corporation may sue or be sued, engage in contracts, and acquire property. A corporation is formed through articles of incorporation, which specify the rights and limitations of the entity," (Block & Hirt, p. 9). This said, the shareholders' personal assets are not at risk if the corporation is sued, unlike a partnership or sole proprietorship...
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