The company doesn’t have ‘less’ liability, it has separate liability.

You wouldn’t expect that you would be responsible for the actions of a roommate in most cases. Creating a business entity separates the business from the person running it. The taxes are separate, the owned properties are separate, the liabilities are separate.

Say you own a small restaurant, The building it resides in (if you owned it) is owned wholely by the company. You also own a personal residence. Now a customer comes in and suffers some injury and they sue. They would sue the business and if it all went badly for you they might take ownership of the business assets including the building it’s in. They could NOT however come take your personal residence that’s not property of the business.

If you tried to do some shady biz and change ownership of the assets away from the company before a judgement was made then the customer could feasibly ‘pierce the veil’ as they say and include you into the suit personally.