All of your personal assets are at risk. For some businesses, that is acceptable. For other businesses, it is not. Partnerships also offer little liability protection for entrepreneurs. Corporations are considered separate legal and taxable entities from the owners of the corporation.
Shareholders own the corporation.
Employees render services for the corporation. You will likely be both a shareholder and an employee of your corporation. If you are an angel investor in a company, you might be a shareholder without being an employee. There are two primary ways to withdraw money from your corporation. As an employee of the corporation, you are entitled to just compensation for any services you render the corporation.