What is the difference between a proprietorship and a corporation?

As a proprietor you and your business are considered one for tax purposes. With a corporation you and your Corporation are separated. That means you would not be considered one for tax purposes. There is a fee involved with setting up a corporation. We can recommend professionals who can assist you in understanding all that is entailed and we can help to answer any of their questions with you. A private corporation is usually guaranteed by its primary shareholder (you), so when it comes to liability you and the corporation are both liable.