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There are also disadvantages to partnership which are unlimited liability because one owner may have to cover debts of other owners, partnership is difficult to liquidate or transfer, and when one partner dies the partnership dissolves.
Corporations are owned by stockholders, a board of directors, and officers. Some advantages of corporations are the owner's liability is limited to their investments and by selling shares of stock they can raise capital. Here too there are disadvantages to corporations. Some disadvantages are double taxation, specific statutory procedures must be met which means that they are subject to more governmental supervision and reporting requirements, and credit limitations because of the limited liability they have...
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Common topics in this essay:
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