The business has a legal identify separate from the shareholders and between shareholders. You can start the company with only two shareholders, one a director and the other the company secretary who keeps the records required by law. Direwctors salaries are taxed under PAYE as employees. If you do not like the name offered - this can be changed for approx. It has a registered name which is legally protected and the company has a regulated structure.
Ownership is shared with other investors.
These can be compared to other investments such as government bonds or interest from bank accounts. If company fails, business assets e.g. land, equipment, stocks, bad debts etc are liquidated and losses are paid. They may suffer job loss, but employees cannot be pursued for company debts. Thus the original owners can raise money for the company or to liquidate some of the funds they injected into the company. The shares reflect the value of the firm which may be greater than the actual sums thus invested.