Figure 14.1 Corporate Form Selection Factors. Form Sole Proprietorship Partnership Creation Continuity Control Liability Taxation No forma So long Total control by Personal All business documentation proprietar proprietor obligation for income subject to business desires, but all debts and personal taxation licenses only no transfer to others Automatic based Dissolved Each partner Personal All business on business Whenever has equal voice; obligation for Income subject to conduct one partner modified by all debts and personal taxation modified by withdraws agreement labilities: Joint divided equally agreement and several Viability Corporation Incorporators Perpetual Managed Shareholder Corporate apply for state so long as it by officers, obligations income taxed: charter with can conduct appointed by limited to Shareholders taxed articles of business directors, who investment only on Income incorporation are elected by absent other distributed shareholders commitments Limited Partnership Dissolved when General Personal All business Partnership agreement and general partner partners have obligation for income subject to certificate filed withdraws total control general personal taxation in public office partners where business limited partners is conducted obligated for investment S Corporation Perpetual, so Shareholder All business Managed Incorporators apply for state long as number by officers, income subject to obligations charter with of shareholder limited to appointed by personal taxation articles of limited directors, who Investment, are elected by absent other incorporation shareholders commitments Members are All business Equal Dissolved Organizers Limited agents, but when member Liability income subject to management file articles of by members liable only for withdraws personal taxation Company or organization Investment unless manager Partnership with state but may be official continued by designated those remaining Source: Delaware Division of Corporations. Legal Business Structure Table, lip//revenue delawareyon.