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> The legal construct of a corporation itself only exists because they are regulated without any rights. That's why you can shield yourself from many legal resp
by mindslight 3y ago
> The legal construct of a corporation itself only exists because they are regulated without any rights. That's why you can shield yourself from many legal responsibilities by setting up a corporation (even anonymously in some states), because its not a human with human legal accountability
First, a nit: corporations as entities have similar financial accountability as a person. The real dynamic is that people create them to avoid themselves being personally accountable for their actions.
But the reality is much worse than you describe. You, as an individual, cannot actually spin up an LLC or corporation and have it protect you. There are too many ways to pierce the corporate veil of small businesses where the owners are directly involved in running it - one big general argument is that owner-operator's negligent action directly caused $bad_outcome, and owner-operator is still personally liable for their personal actions, regardless of the entity. The only way you can actually get the benefits of the liability shield is to find a bunch of other people to actually do all the work of operating the business, essentially creating the a group project where resulting actions are either written off as "nobody's fault" or that of some judgement proof employee. So the liability shielding properties of LLC/corps are ultimately only for the rich and not the average person - which isn't terribly surprising if you look at their legal history and other now-deprecated forms of entities (eg Limited Partnerships).
I wholly agree with you that corporations and LLCs shouldn't be viewed as just groups of individuals, by virtue of them obtaining a government charter and a liability shield. This narrative that companies are merely gatherings of individuals is utterly disingenuous. If you want to create a group to collectively exercise your individual rights, do so without asking for a regulatory handout.