Issue: the LLC works well for the rich and for publicly-traded companies and their officers. It isn't working for small businesses. If you want to take bank loa

Issue: the LLC works well for the rich and for publicly-traded companies and their officers. It isn't working for small businesses. If you want to take bank loans, you have to take on personal liability. That defeats the point of the LLC, which is protect you in the case of good-faith business failure. It ends up protecting large corporations and their officers (who often abuse the corporate veil) but not the little guy as much as it should. For low-risk businesses where principal loss is rare, bank loans work. For example, it's rare that a coffee shop will go to zero. Most "failing" small businesses earned a profit that didn't justify the proprietor's work and opportunity cost and were therefore discontinued, but they didn't go to zero. Mid- and high-risk businesses (like any software company) are not a fit for bank loans. For the very high risk, there's VC. The middle of the risk spectrum is completely underserved when it comes to investment. (VC could target the mid-risk businesses aiming for 20-40% per year and it would work, but VC is a celebrity economy and individuals are motivated by the careerist benefit of being in on a Facebook, not building a strong business over 10 years that'll last 40.) Right now, we see a lot of abuse of the corporate veil. For example, health insurers. Health insurers are protected from civil and criminal charges resulting from their decisions, and they absolutely shouldn't be. The LLC's valid purpose is to protect people in the case of good-faith business failure, but not to shield scumbags like the health insurers.