The Individual Limited Liability Company is a form of organizing a commercial enterprise, by means of which the Salvadoran legislation grants natural persons a way to limit their patrimonial liability before third parties. This modality allows entrepreneurs to start their operations by means of a unilateral legal act, making future decisions individually. The patrimony of this company is different from that of the owner and is freely formed with the assets that the owner designates and assigns in favor of the company, by means of an inventory duly certified by an external auditor.

The main characteristic of this legal fiction consists in the way of covering the obligations incurred in the business of the company, which will be covered with the company's equity, including capital, reserves and the profits not withdrawn by the owner. Consequently, the personal creditors of the owner of the company cannot seize the assets belonging to the company, unless the owner becomes bankrupt.

In this sense, the individual limited liability company is presented as an alternative for the development of micro and small businesses, since it allows the owners of these companies to separate their personal assets from the assets destined to the development of the economic activity of their business, without the need to associate and constitute a legal entity, operating in this sense with the personality of its owner. In addition, it presents facilities in its formalization, since it is constituted by means of a form provided in the facilities of the Registry of Commerce that complies with a series of minimum requirements demanded in the Code of Commerce; and, of transfer, since it has the incentive that it can be transferred by act between alive or by cause of death, that is to say that it can be sold or inherited, among others.