Looking for positives, but especially negatives. What are the pitfalls of not granting corporations the same rights as people/citizens?
Looking for positives, but especially negatives. What are the pitfalls of not granting corporations the same rights as people/citizens?
It could exist as an automatic thing, but you need to carefully define in what situations it exists. If anything goes someone will do something absurd - my company is a hitman for so you can’t try me for murder only my company which only has the pistol for assets. Now take the above but for something that is borderline - where are the borders. Should my car automatically be owned by a LLC (this is how most small airplanes are - you often don’t sell the airplane you sell the company that has that airplane as an asset). There are many many situations in life where a LLC might be useful, most of us don’t bother most of the time and are just fine, but maybe we should anyway?
However there is a different consideration: in pretty much all cases where someone wants a LLC the will need some paper anyway because they want different taxes and so you may as well require paperwork for all cases even those few where taxes won’t be a factor.
I get the paperwork for taxes, just not why an individual should be held as more responsible for the same actions as a company if they didn’t fill out paperwork to be a company. Why are companies special?