1. Ownership Structure

• A sole proprietorship is owned by one individual.
  
• A partnership involves two or more individuals sharing ownership.
  
• A corporation is a separate legal entity owned by shareholders.
  
• Sole proprietorships and partnerships are closely tied to the individuals involved, whereas corporations exist independently.
  
• In corporations, ownership can change through the transfer of shares.
  

2. Legal Identity and Liability

• A sole proprietorship has no separate legal identity from its owner.
  
• A partnership also lacks a separate legal status but is shared among partners.
  
• A corporation is a distinct legal person under the law.
  
• Sole proprietors and partners have unlimited personal liability.
  
• Corporate shareholders enjoy limited liability protection.
  

3. Formation and Regulatory Requirements

• Sole proprietorships are the easiest and least expensive to start.
  
• Partnerships require a partnership deed and may need registration.
  
• Corporations must be registered with the government and meet ongoing compliance standards.
   
• Corporations must also follow more complex legal and regulatory processes.
  
• The formation cost and paperwork increase from sole proprietorship to corporation.
  

4. Management and Decision-Making

• In a sole proprietorship, the owner has full control.
  
• Partnerships require mutual consent and shared decision-making.
  
• Corporations are managed by a board of directors and executive officers.
  
• Corporations follow formal procedures for major decisions.
  
• Sole proprietors can make quick decisions without external approval.
  

5. Continuity and Transferability

• Sole proprietorships end with the owner’s death or decision to close.
  
• Partnerships may dissolve when a partner leaves unless otherwise agreed.
  
• Corporations have perpetual succession regardless of ownership changes.
  
• Transfer of ownership in corporations is easier through share transfers.
  
• Sole proprietorships and partnerships have limited continuity and transfer options.