ABSTRACT
A sole proprietorship is run by one individual and there is no legal distinction between the owner and the business. All profits and all losses from the business go to the owner, all assets of the business are owned by the proprietor, and all debts of the business are the responsibility of the owner to be paid from personal resources. The general partnership is the basic noncorporate form for multiple owners, representing an association of two or more persons to carry on as co-owners of a business for profit. A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners. The limited liability partnership is a variation of the general partnership, providing for limitation of liability without the restriction on active participation.
