Legal subjectivity:

In a limited liability company, the company's debts are generally borne independently by the company, and shareholders bear liability within the scope of their capital contribution. The difference between shareholders and legal persons is as follows: 1. The legal representative bears the responsibility for operation, while the shareholders bear the responsibility for capital contribution. 2. Legal persons enjoy the power of operation and management, while shareholders are just investors and enjoy rights such as income. 3. General shareholders only bear financial responsibilities, while legal persons bear all responsibilities, including legal liabilities. 4. When signing a contract with other companies, it is only valid if signed by the legal person. A is the legal representative of the company and bears operational responsibilities, and B is the shareholder of the company and bears capital contribution responsibilities. Limited liability means that once the company's operations are unfavorable, shareholders are only liable up to the limit of their capital contribution. They do not need to bear liability for the excess debt. In this case, it is usually bankruptcy. A registered capital of RMB 1 million will only bear liability of RMB 1 million. The legal person will bear the rest. Legal objectivity:

Article 2 of the "Sole Proprietorship Law of the People's Republic of China" as mentioned in this Law refers to a sole proprietorship established in China in accordance with this Law and invested by a natural person. It is an operating entity that is personally owned by the investor, and the investor bears unlimited liability for corporate debts with his personal property.