You should consult an attorney for advice on a partnership agreement. This is the most complex and expensive way to structure a business, but it also offers important protections for the owners. A corporation is a legal entity distinct from its owners. Except where shareholders are professionals who are always responsible for their own negligence, the liability of corporate shareholders is limited to the amount of their investment. A corporation has advantages in raising capital because of greater access to investors.
Corporations are difficult and expensive to set up and dismantle.
There are stricter legal rules than for other business structures. Power is limited by the articles of incorporation and bylaws, and a vote of the shareholders may be required for various decisions. As a separate legal entity, a corporation must maintain its own set of accounting records and file its own income tax returns. Corporate shareholders are subject to a form of double taxation. This is a special problem for small corporations controlled by their owners.