Control of the Business
Sole Proprietorship: You have absolute authority over all business decisions.
Partnership: Control of the business is shared with your partners – a situation or arrangement that ma lead to disputes. However, you are still responsible for your partner’s business actions, as well as your own.
Corporation: Control is exercised through regular Board of Directors' meetings. Records must be kept on document decisions made by the Board of Directors, Small closely help corporation can operate more informally, but record keeping cannot be eliminated entirely. Officers of a corporation can be liable to stockholders for improper action.
Sole Proprietorship or Partnership: All net income is taxable to the individual according to each partner's share ownership
Corporation: There are two ways to tax a corporation; as a straight corporation or as a Subchapter S Corporation. A Subchapter S corporation is taxed in much the same way as a partnership, and does not incur income tax liability at the corporate level.