Although individual merchants rely on their own business to make profits, once they lose money, they have to bear all the risks of starting their own businesses. A merchant registered with a limited liability company can apply to the court for bankruptcy liquidation even if it fails to start a business. At the same time, if the registered capital of the company is only 500,000 yuan, but the foreign debts owed are several hundred million yuan, then according to the relevant laws and regulations of the limited liability company, the merchant only needs to bear the debts with a loss of 500,000 yuan, and does not need to bear the debts other than the responsibilities.
2. Broaden sales channels and opportunities;
It is difficult for a single business to reach cooperation with other companies. Even if there are good products, if other companies take a fancy to the products of the merchants, due to the company's regulations, they can only introduce products through targeted investment, and the merchants are individual businesses, not companies, so they can't reach cooperation, and they are likely to lose the opportunity of cooperation and make big money. In addition, if there are no companies or trademarks in JD.COM, Tmall, Mushroom Street and other large shopping malls, it is very likely that they are not even qualified to apply for these platforms.
3. Customer trust level;
The establishment of any company must be approved and registered through the strict examination procedures of the industrial and commercial bureau, establish its own articles of association, and obtain a series of certificates with legal effect, which is highly legal, regular and systematic. When a customer makes a choice and a merchant wants to bid for a project, it is obvious that the company is more likely to win the bid, because the company is more trustworthy than a single merchant.