The advantage of the company is that it can be transferred after registration, and self-employed individuals can only operate individually. The disadvantage is that it needs higher registered capital. The advantages of self-employed individuals are: simpler application procedures, less expenses and relatively more flexible operation. The disadvantage is that the subsequent development is quite weak than the company.

A limited liability company, referred to as a limited company for short, refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and established by shareholders with less than 50 employees. Each shareholder shall bear limited liability to the company to the extent of the subscribed capital contribution, and the company as a legal person shall bear full responsibility for the company's debts with all its assets. Individual industrial and commercial households refer to commercial activities that citizens engage in in their own names within the scope permitted by law.

Self-employed persons do not have the qualification of legal person, and the person in charge or the actual operator should be the main body in the lawsuit. Loans and loans arising from self-employed persons should also be represented in the name of natural persons, so the business scale is small and the internal division of labor is simple.

The company has legal personality, and a series of activities are represented by the legal representative. The establishment requires relatively strict procedures and some important conditions.

In addition, the business activities of self-employed individuals are simpler, for example, they do not need to liquidate when they terminate their business, but only need to deal with the accounts generated in their business.