The government interferes here for good reason, as no one would start a business if they would be personally responsible for random things. The LL in LLC is Limited Liability. Most governments want to make it easy to start a business.
This is the status quo because it has been consistently better than the government doing everything and being liable for everything. With private companies, you have various branches of the government with some ability to correct or regulate matters when a private entity is liable or responsible for something.
In the alternative scenario, when something goes wrong and the government is liable, good luck getting the government to find itself liable.
> The government interferes here for good reason, as no one would start a business if they would be personally responsible for random things.
People started businesses for a very long time before limited liability existed. Heck, people continue to start businesses as general partnerships and sole proprietorships to this day, despite the fact that those forms do not feature limited liabiity, centuries after limited liability was first applied to some business forms. So, “no one would start a business if they would be personally responsible” is very clearly false.
I agree. That was not the point I was making.
The government interferes here for good reason, as no one would start a business if they would be personally responsible for random things. The LL in LLC is Limited Liability. Most governments want to make it easy to start a business.
This is the status quo because it has been consistently better than the government doing everything and being liable for everything. With private companies, you have various branches of the government with some ability to correct or regulate matters when a private entity is liable or responsible for something.
In the alternative scenario, when something goes wrong and the government is liable, good luck getting the government to find itself liable.