Owner is personally liable for all business debts. All business income is considered personal income to the owner and is taxed at personal income tax rates.
All partners are jointly and severally liable for all partnership debts.
Individual partners' prorated share of partnership income or loss is included on their personal income tax return and taxed at personal rates. Limited partners do not have this option. General partners generally run the business as specified in the partnership agreement. Owner's liability is limited to the amount of capital contributed unless acting as guarantor of corporate debt. Corporation pays tax on the business income at the corporate tax rate.