A partnership differs from a sole proprietorship mainly in:

A partnership primarily differs from a sole proprietorship in the number of owners involved. A sole proprietorship is owned and operated by a single individual, while a partnership consists of two or more individuals who share ownership and management responsibilities. This distinction in ownership structure creates different dynamics in decision-making, resource pooling, and financial commitments. A partnership allows for more diverse skill sets and contributions from multiple partners compared to a sole proprietorship, which may rely solely on the capabilities of one person.

The other options, while they might involve differing aspects between these two business forms, do not capture the primary distinguishing factor. Liabilities can be similar or more complex depending on the agreement between partners; tax structures can vary but often require partner-specific considerations rather than a complete transformation; and while the purpose can differ, it is not the fundamental difference that defines the operational structure of these business types.