| Sole proprietorship | Partnership | Corporation |
| Ownership | A single owner | Two or more owners | Usually owned by many shareholders |
| Profit or losses | All profits go to the sole owner | Profits split equally, or by pre-determined terms amongst the owners | Dividends declared and given to shareholders |
| Liability | The owner has unlimited liability | Usually split amongst the owners based on the terms | Limited liability – individuals are not usually directly liable for activities within the corporation |
| Decision-making | All decisions for the firm are made by one owner | Owners in the partnership are responsible for the decisions | Board of director and shareholders |
| Tax | Owner is taxed on his personal income/profit from the company | Owners are taxed on their respective incomes | A corporation is taxed as a “person” |