Sole Proprietorship: The owner is personally liable for all business debts and legal actions, putting personal assets at risk. Partnership: Partners share liability, with general partners having unlimited liability and limited partners having liability up to their investment amount. Corporation: Shareholders have limited liability, protected up to the amount of their investment. The corporation itself is liable for business debts and legal actions. LLC: Owners (members) have limited liability, similar to a corporation, protecting personal assets while allowing for flexible management.