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Q: What defines business and potential risks and rewards?
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What is a business with two or more businesses that share the risks and rewards?

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When determining how to setup business structure, consider the size of the initial company and the potential for liability within the business's industry. Proprietorships are owned by individuals and the owner accepts all the risks and receives all the rewards earned by the business. Many companies begin as proprietorships and incorporate later. Partnerships are structured like proprietorships but have 2 or more owners. The partnership need not be a fifty-fifty split, but this format allows the owners to share the risks and benefits of entrepreneurship. Corporations are legal entities, meaning that they are treated as separate people under the law. While this reduces risk to owners, it also increases taxes.