A corporation is a legal entity comprised of the board of directors, which has the power to bind the other members of the corporation to act in its interests. Corporate law exists so that the interests of all members are protected. It is a body of law that governs how a corporation functions. The corporations help the economy with the production, distribution, and consumption of goods or services, through the exchange of currencies. The money they finance are called reserves, and they can be called up when needed by the economy.
Corporations are classified by law into different categories, depending on their nature and number of shareholders. A partnership is one in which there is no common shareholder; therefore the corporation must pay tax on its income to the government, like every other business. A partnership may have another type of entity such as an unincorporated partnership, a corporation, or a sole proprietorship. A corporation may have several types of entities such as a partnership, proprietorship, LLC, and Corporation, and they all qualify as taxation entities.
A partnership is a legal business entity where individuals share the same ownership interest. They have the same standing as corporations and need to register their corporations with the state. All partnerships are considered separate from the corporations they own or operate.