This study has the objective of showing that the actual progress caused by the new provision in the Brazilian law of individual firm with limited liability (empresa individual de responsabilidade limitada) is the guarantee of entity shielding, and not the protection of the limited liability. Since this theme was not yet analyzed by the Brazilian literature, we used American literature to fundament the study. With these resources we will be able to identify the positive and negative aspects of limited liability and entity shielding in order to make a cost and benefit analysis of these institutes. At last, we will make use of all that was discussed in order to apply to the individual firm with limited liability. We will use Brazilian doctrine only in relation to the limited liability companies, since the individual firm with limited liability uses these statutes as supplementary to their law. The study will conclude with a subject not yet discussed in the Brazilian literature, which is the liquidation of shares.