Partnership: A Partnership is an association of two or more persons to carry on as co-owners of a business for profit, whether they intend to form a partnership or not. A partnership does not have to be in writing, but a partner is jointly and severally liable for the actions and wrongdoings of the partnership.
LLC: A Limited Liability Company (LLC) provides for flexible management – it can be structured like a corporation or a partnership, but generally managers run the LLC. There is no liability for members of an LLC other than the wrongdoer. Profits and Losses are generally split in proportion to the capital contributions.
Corporation: A Corporation is considered a separate legal person- it can sue or be sued, hold property, pay income taxes. Generally, shareholders, officers and directors are not liable for debts or wrongdoings of the corporation. A corporation issubject to double taxation, however, unless you make a Subchapter S election with the IRS. These elections are available in limited circumstances to privately – held companies with under 100 employees.