It would turn that around and say that people who pretend to defend free markets support limited liability companies as a pragmatic solution, while people who p

It would turn that around and say that people who pretend to defend free markets support limited liability companies as a pragmatic solution, while people who pretend to support free markets, but want to have the social cred of rebelling against the existing system, make a big deal about the theoretical problems of limited liability. In practice, a corporation by far is most likely to owe money to its creditors, and not random third parties. In this case, all limited liability does is create a default contract (and rule out alternatives) in which the creditors cannot go after the investors, but can seize the company if it stops repaying its debt.