What is the most important difference between a corporation and all other organizational forms?

The most important difference between a corporation and all other business forms is that corporations have limited liability while other business organizations such as partnership and sole proprietorships have unlimited liability. This means that a corporation is a legal and separate entity from owners. Therefore, in case of loss shareholders cannot lose their personal properties to pay outstanding external liabilities. On the other hand, in other business organizations, owners can lose their personal properties to cater for external debt.