Switch the business form and watch owner liability and taxation change.
| Owner liability | Unlimited |
|---|---|
| Business taxed separately | No |
| Ownership easily transferred | No |
A and a are the simplest forms to start, but their owners carry unlimited personal liability for the business's debts. A is legally separate from its owners, so its shareholders risk only what they invested.
FastForward is a corporation: Chas Taylor's $30,000 buys common stock, not personal ownership of the business's assets. That separation is also why a corporation's income can be taxed twice — once at the business, once again when profits reach shareholders as dividends.