Debt of one partner becomes the debt of all partners. Growth inhibited by size of partnership. No clear line of authority. A business may incorporate without an attorney, but legal advice is highly recommended. The corporate structure is usually the most complex and more costly to organize than the other two business formations.
Control depends on stock ownership.
Persons with the largest stock ownership, control the corporation, not the total number of shareholders. With control of stock shares or 51 percent of stock a person or group is able to make policy decisions. Control is exercised through regular bard of directors meetings and annual stockholders meetings. Records must be kept to document decisions made by the board of directors. Small, closely-held corporations can operate more informally, but keeping minutes of company meetings cannot be eliminated entirely.