| Although the more recent innovation of Limited Liability | | | | the politician is caught taking bribes, they are likely to be |
| Companies has been something of a challenge to the | | | | deposed at the next election and stand an excellent |
| popularity of corporations in recent years, the latter is | | | | chance of never being trusted again. Just as an |
| still a firm favorite way among business owners to | | | | identity can work in your favor, it can also attract a |
| protect their own position and defend their home and | | | | great deal of criticism. By creating a corporation, |
| family from the sensitivities of the business world. | | | | creating an identity, there is plenty to be gained. |
| Creating a corporation ring-fences your own money, | | | | However, association with a discredited brand does a |
| your own assets and those of your family apart from | | | | lot of harm to future employment prospects, present |
| your business funds and assets. For this reason it is | | | | profitability and a personal reputation. |
| hugely popular, much in the same way as Limited | | | | There is also some criticism leveled at corporations in |
| Liability Companies are. However, one thing which is as | | | | general. Chief among these is the belief that giving a |
| true in business as it is in life - possibly even truer - is | | | | collectivist entity the rights and privileges of an |
| that there is nothing that comes with advantages that | | | | independent human being can lead to big problems |
| does not also bring with it some disadvantages. | | | | regarding equality. The corporation, it is said, becomes |
| In a corporation, the disadvantages can perhaps best | | | | like a superhuman entity with increased financial power, |
| be described by the use of an analogy. In creating a | | | | a measure of legal immunity and even immortality of |
| corporation, you create an identity for your business, a | | | | sorts - if operated correctly, a corporation can |
| separate identity from those of the people who make | | | | continue indefinitely. It is argued that by allowing |
| the business. An identity is an interesting thing. Think of | | | | increased rights to corporations, we encourage a |
| a famous actor or a politician in a powerful position. If | | | | widening gap between not just rich and poor, but |
| an actor wins an award, they find themselves | | | | between the super-rich and everyone else. |
| inundated with interview requests, offers for bigger, | | | | Additionally, there is felt to be an inevitability that, where |
| better paying roles and the focus of untold support | | | | the owners (who profit most) are separated from the |
| and adulation. If a politician is elected to higher office, | | | | management (who effectively create the profits), the |
| they find themselves in a position of power and | | | | former feel less of a sense of responsibility for the |
| influence, able to use their position to make the | | | | latter. The consequence of this is that the needs of |
| changes that they dreamt of when they first went into | | | | the management are neglected, and the owners - |
| politics. | | | | drunk on power, in popular parlance, create the |
| Then think of what happens if the actor is found drunk | | | | conditions for the demise of their company. |
| behind the wheel of their car. Studios do not want to | | | | Disclaimer: This article is for informational and |
| take their agent's calls, the lucrative teen heart-throb | | | | entertainment purposes only, and should not be |
| market is lost and an expensive stint in rehab awaits. If | | | | construed as legal advice on any subject matter. |