The Distinguish between partnership and joint stock company is an important distinction to understand. Both are forms of business ownership and have advantages and disadvantages. One of the key differences is liability. In a joint-stock company, each shareholder is liable for the entire debt of the company, regardless of their proportional ownership stake. In contrast, a partnership firm is a separate legal entity and its debts are not personally liable to the owners.

Both are governed by the respective regulatory acts and both have their unique benefits. A partnership business can be taxed as a sole proprietorship or an LLC. It can also be taxed as a corporation or an S-corporation. It is important to consider the tax implications when deciding which business structure to choose.

Choosing the right business structure can help protect personal assets and limit liability. It is important to decide how you want to share profits and losses and create a plan for what will happen if one of the partners dies or leaves the business.

A joint-stock company is an incorporated company that has a common seal and perpetual succession, and whose capital is divided into shares that are freely transferable. It is an in-between creation that is more closely held than a public corporation, but more widely traded than a partnership. It is a precursor to modern corporations and is still in use today.