Limited company is also called limited liability company, the former is the abbreviation of the latter. Limited company is a kind of enterprise.
Self-employed individuals should bear unlimited liability, and they should bear operational responsibility with all the property of individuals (even families) in their operations. For a popular example, the size and property of the store is only 654.38+10,000 yuan, but if they do a business of 1 10,000 yuan, they should not only use the store's 654.38+10,000 yuan to compensate, but also use personal property and even family property to compensate.
Limited company undertakes limited liability. If the registered capital of the company is only 654.38 million yuan, it will only bear the highest compensation liability of 654.38 million yuan.
Self-employed individuals do not need registered capital, but can register in the name of individuals or families.
There are two types of limited companies. An ordinary limited company needs more than 2 shareholders with a minimum registered capital of 30,000 yuan. A one-person limited liability company only needs 1 shareholder, with a minimum registered capital of 654.38 million yuan.
Limited companies have a better image, and people are more willing to deal with companies. Advantages of a limited company: it is faster and easier for a limited company to borrow more, and it can also find investment companies to invest. First, the company has a noble identity [customer trust] ... too many advantages]. Self-employed individuals have no legal representative, but they are bosses, and the company has the legal representative status of the chairman. In short, a self-employed person is equivalent to a "shop" that wants to be bigger and stronger. Let alone a loan. Cooperate with customers and they will trust you. They want to be bigger and stronger, and they want to have a company that needs to be developed.