What is the difference between a partnership and a corporation?

The difference between a partnership and a corporation in Georgia is that a partnership is an unincorporated business arrangement formed by two or more individuals, while a corporation is a legal entity created by state law with its own rights and liabilities. In a partnership, each partner shares the profits, losses, and management of the business according to the terms of the partnership agreement. All partners are personally liable for the debts and obligations of the partnership. In contrast, when creating a corporation in Georgia, the state will assign limited liability to each shareholder. This means that the debts and obligations of the corporation are the responsibility of the corporation and not the shareholders. Furthermore, the shareholders of the corporation will be able to transfer their ownership interest without affecting the legal structure of the entity. Additionally, corporations can exist on an indefinite basis, while partnerships must be dissolved when either a partner leaves, dies, or if the partnership agreement has been fully met. All in all, the main difference between a partnership and a corporation in Georgia is that a partnership is an unincorporated business arrangement with limited liability for the partners, while a corporation is a legal entity created by the state with limited liability for shareholders.

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