Liability is one of the most critical reasons for establishing a corporation rather than any other form of business. The proprietor and general partners are liable for all aspects of the business. Since the corporation is an entity or legal "person," which is taxable and absorbs liability, the owners are liable only for the m=amount of their investment unless there is negligence of fraud involved. In the case of a proprietorship or regular partnership, on distinction is made between the business entity and the owner(s). Then, to satisfy any outstanding debts of the business, creditors may seize any assets the owners have outside the business.