What is the legal difference between a studio and a company?

1, studio, simply understood as a sole proprietorship enterprise, and the investors bear unlimited joint and several liabilities. The debts of the studio shall be paid off with the property of the studio first. When the debts are not paid off, the investors shall bear unlimited liability with their personal property.

2. Simply put, a limited liability company means that the investor/shareholder assumes limited liability, that is, paying off the company's debts within the scope of shareholder's contribution. If it is not paid off, the company will go bankrupt and will never be paid off again.

Extended data 1, the limited liability of the shareholders of the company determines that the shareholders of the investment company can not only meet the needs of investors to seek benefits, but also limit their risks to a reasonable range and increase their investment enthusiasm.

2. Companies, especially joint stock limited companies, can publicly issue stocks and bonds in the society, raise funds extensively, and facilitate the establishment of large enterprises.

3. The company implements the principle of complete separation of ownership and management rights, which improves the management level of the company.

4. The unique organizational structure of the company makes the company's capital and operation tend to maximize the benefits and better realize the purpose of investors.

References:

Baidu Encyclopedia: Company