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PaperclipPerfector  1yr ago (text post)   28479 thread views

Culture War Roundup for the week of September 11, 2023

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How is it virtually impossible to operate a business without a limited liability corporate structure? Many businesses in the United States are sole proprietorships which do not have limited liability.

How is it virtually impossible to operate a business without a limited liability corporate structure?

Very loose liability law meaning it's very easy to be sued into bankruptcy. Survivable if only the businesses go under, but if that can bankrupt the investors as well, you're not going to have any.

Yes, but that's because liability in the US is fundamentally rotten. Many countries have extremely strict caps on liability for a vast catalogue of different things, 'unlimited liability' is bullshit.

I don't disagree, but the bad reasons don't change the consequences.

For one, all your competitors are limited-liability.

"Many" is a weasel-word here. "Many" could be 5 businesses in the whole country. While there are some some sole proprietorships, you would be a fool to own one. Serious businesses are not run that way. Sole proprietorships are for hobbyists and the naive.

In the time it took you to write this comment you could have looked it up and found that most businesses in the US are sole proprietorships.

I did look it up and that information tells you nothing. Most of these "businesses" are a single person. How many have 10 employees? How many have 100?

So you knew it wasn't five businesses in the whole country?

Businesses that aren’t selling Etsy art are very likely to be incorporated via a single member LLC (unless the owner is a complete idiot).

Yes, you got me. You are technically correct (the best kind of correct). There are millions of businesses in the U.S. the vast majority of which have little revenue and no employees. These tend to be sole proprietorships.

If you want to sell Beanie babies on Ebay, the government is not standing in your way. Go for it. You're very unlikely to be sued and lose your house.

The second you hire employees, that goes out the window.

I retreat to my motte.

This data indicates otherwise.

A post long on assertion and short on reason or evidence.

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