This is an answer to the question: please identify and discuss three differences in the creation/organization, operation or dissolution/closure of Partnerships verses Corporations.

I need 7-8 sentences responding to the answer (not answering the question above) written by my peer. Please make sure each paragraph is error/grammar free and making constructive criticism or add more information to content.

--------------------------

There are three common forms of business organization, which are sole proprietorship, partnership and company. A sole proprietorship is the simplest form of business organization with only one owner. A partnership is an organization in which two or more owners share gains and losses . Each partner has the right to manage the organization and is responsible for the debt. Partnerships include General partnerships and Limited partnerships. A corporation is a legal entity separate from its owners. One of the important characteristics of a corporation is limited liability, which means it does not participate in the operation of the business and assumes limited liability for its debts. The company includes Traditional S and C Corporations and Limited Liability Corporations. In everyday life, partnership and corporation are common forms for entities. There are several differences between them in creation, operation and closure.

1. Requirements of Creation

A partnership must have two or more owners, which is called the partner. The court judges whether the partnership exists from five aspects: intention of both parties, profit and loss sharing, joint operation and management, capital investment of both parties and ownership of common property. Partnerships usually result from an expressed or implied contract, but the partnership may occur without a signed document . A partnership is a legal entity, apart from the partners. Partnerships cost less and obtain local or state business licenses and permits.

The number of owners of a corporation is one or more . The corporation's owner is known as Stockholders.The corporation can sell shares to attract more investors. A Stock certificate is a written document of ownership of stock that certifies that the shareholder holds a certain number of shares and has some rights. Common stock is the simplest type of stock, meaning that the holder enjoys a share of the company's profit . Holders of preferred stock have priority over dividends . A corporation is a separate entity with the same rights and obligations for everyone . Corporations are set up with substantial management fees and complex legal requirements .

2. Operation and Management

A partnership is not a tax entity. This does not mean that the partnership does not pay taxes, but that there is no additional business income tax on the partnership. Although partnerships do not have to pay business tax, losses are passed on to the individual partners. Partnerships are required to file tax returns and report losses and profits to the I.R.S. Partners include their share of gains and losses in the income statement. In a partnership, each partner has the same right to decide how the company is operating .

As a tax entity, a corporation needs to pay additional business income tax .The corporations pay the taxes on its net profits. When corporations pay dividends, the taxes also should be paid. Therefore, corporations are double taxed, The shareholders of the corporation meet regularly to determine the company's management and policies. Shareholders typically do not participate in the management of a company, but rather oversee its operations. In the election of directors and major policy issues, each shareholder shall have one vote for each share. The corporation has the ability to issue shares and can be invested.

3. Dissolution and liquidation

In a partnership, the liability of the owner is unlimited. Partners are legally liable for all debts, indicating that the assets of the partners may be used to pay the debts. The partnership agreement signed by the partners at the time of the formation of the partnership specifies the percentage of shares in the company for which each partner is responsible, and the percentage may vary between partners . Partnerships have stricter rules on the admission of new partners or the withdrawal of old partners, which can only be carried out with the consent of all partners . When a partner is going to Wind Down and wrap up the partnership, the partnership needs to wind down and wrap up . Only after the partnership has been liquidated can it be closed.

The liability of the owner of a corporation is limited. Shareholders are not responsible for all of the company's debts, so they do not lose their personal assets. Shares in a corporation can be sold freely. Shareholders can sell their shares if they want. The dissolution of the company requires action through the board of directors. The board of directors must approve and submit a proposal to dissolve shareholders. Shareholders must then vote on the proposal at a general meeting