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What is the difference between a corporation and a partnership?

A corporation is the name used in the United States for a business association established by one or more people who later sell shares in the corporation to investors. In a partnership, there are one or more owners who share jointly in the profits, liabilities, etc., and these partners are personally liable for the debts. A partnership, then, is usually created for a small company. Once the company grows larger, it is usually prudent for the owners to change over to a corporation. There are also differences between a partnership and a 'limited liability company (LLC)', a 'general partnership', and a 'limited partnership'. The main difference between a partnership and an 'LLC' is that partners are personally liable for any business debts of the partnership, while owners of an 'LLC' are not personally liable for the company's debts and liabilities. 'Limited partnerships' are very different from general 'partnerships', and are usually set up by companies that invest money in other businesses.

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