The sole proprietor is personally liable for the business. A partnership can be a general partnership or a limited partnership. A general partnership is viewed by the IRS essentially as two or more sole proprietors equally responsible for the business. The terms of sole proprietorship apply fully to each partner. In limited partnership includes one or more general partners and one or more limited partners.
Limited partners are liable for activities of the business to the extent of their investment.
A corporate Boards of Directors oversees policy and strategy for corporations, whether for-profit or nonprofit. Theoretically the for-profit and nonproft corporation exists forever, past the death of its owners. For-profit corporations can be a C Corporation or Subchapter S Corporation. More about these in the topic Enterprise Law . The LLC is an increasingly popular form of organization.