Many companies use this particular legal form. A limited liability company is an association of several individuals and (or) legal entities for joint economic activity. The authorized capital is formed only at the expense of the contributions of the founders.
A limited liability company is a legal entity and has its own name. All participants in such an enterprise are liable for their obligations within their contributions. This distinguishes this legal form from a private entrepreneur, since he is liable for his obligations with all his property. The main advantage of a limited liability company is that the solvency of each participant in the obligations is limited to the amount that he has contributed to the charter capital in accordance with the contract. It matters if you are going to take large amounts of money on credit, a large number of goods for sale, to carry out other risky business operations. A limited liability company continues to exist even if some participants decide to leave it, individually went bankrupt, or died. This does not affect the state of affairs in general. Another advantage is that your children can become members of this society by inheritance.If you buy a ready-made enterprise, the costs will be about the same, the registration will take a little time. In this case, you will receive someone else’s charter of the company, someone else’s name, and if you later want to change something, you will incur additional cash costs.
To learn about this topic and not only you can here - https://en.wikipedia.org/wiki/Limited_liability_company
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