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Limitation of current business entity types

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Eugene posted on Sat, Dec 31 2011 3:38 PM

You can read in the following Wikipedia article about the various business entities allowed by the state.

http://en.wikipedia.org/wiki/Types_of_business_entity


I'm quite sure that these business entities are not sufficient for many people. In a free society I imagine many more types of business entities would emerge. 

My question to you, is whether you know about current problems business owners experience with the types of business entities created by the state. Do you know of any limitations that are especially troublesome?

Thank you.

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I don't think that "business entities" would exist in a free-market society. There would simply be organizations and labels for them.

One big problem I see that business owners face is that of eminent domain. Brushing all the legalistic mumbo-jumbo aside, the phrase "eminent domain" simply refers to the notion that the government is the real owner of all land. Businesses may think they own land, but they don't.

On the flip side, universally limited liability is a state-conferred privilege to (some) businesses. I don't think that would exist in a free-market society either.

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Eugene replied on Sat, Dec 31 2011 4:14 PM

How is that a privilege? Do they pay less taxes?

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James replied on Sat, Dec 31 2011 8:32 PM

The company is a sort of state-granted privilege.  It's a fictional person.  In a "free society", you can't expect non-contracting 3rd-parties to respect that, and go after your imaginery "company" when it's you who's really screwed them over.

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