In the event of the owner s death, there could be legal complications. General Partnership A partnership consists of two or more owners with the profits and losses being equally shared. Each partner is liable for business debts and obligations. Each partner s outside assets are subject to claims of creditors. Corporation A corporation is a legal structure that exists separately form the people who create it.
Incorporation limits an individual s liability in case the business fails or is sued.
Because the Corporation is a separate legal entity, a corporate tax must be paid on the money a corporation makes. A person wishing to incorporate must file Articles of Incorporation with the Ohio Secretary of State. A statutory agent also must be designated for the Corporation. At the time of filing, a fee based on the number of authorized shares must be paid. Before shares of the Corporation may be sold, they must be registered with or exempted by the Ohio Department of Commerce, Division of Securities.