What If “You” Were a Corporation?

by Dan Robles on 03/28/2010

barcodeIn the state of Washington, it costs 150 dollars to establish a Limited Liability Corporation. All the documents are online and there is no shortage of tutorials on the process.  It’s a whole lot easier to get a job because it’s real easy for one corporation to hire (and fire) another corporation.  Taxes are simple.

Everyone’s liability is limited and transactions are conducted under a uniform commercial code.  And there are no incentives for people doing what they are not good at and every incentive for people to do what they enjoy most.

A corporation is fictitious.

A corporation exists in the form of a bits and bytes simulating a folder of papers in a virtual file cabinet.  A corporation gets to deduct all of their expenses from their taxes. A corporation has a credit score, it can borrow money, and even have a bankruptcy just like a person.   A corporation can donate unlimited amounts of money to a political candidate.  Corporation garner social respect.  Laws favor corporation. In fact, the cards are stacked in favor of the corporation over the employee.  Unless, of course, you are both.

It’s all in the Management….of knowledge assets.

All of the business theories are written to apply within the construct of the corporation. Corporate accounting provides a host of clever ways to manage assets.  You can depreciate assets, you can inflate or deflate “intangibles” as needed for whatever valuation purpose.  You don’t need to show anyone your accounting either (unless you are a public corporation).  American corporations don’t even need to hire American employees, or any employees for that matter.  Outsourcing goes to other corporations.

Land, Labor, and Capital

Corporations allocate Land Labor and Capital – well, that’s the theory anyway.  Land is underwater in a real estate bubble.  Labor is tragically unemployable or under employed or outsourced to the political slave markets. Capital is being consumed by the “interest” monster conjured into existence from the debt.  Uuhhmmm….So how’s that workin’ for ya’ll??

So why not become a corporation??

Social Media is able to perform almost all of the functions that a corporation would normally do internally. The “Last Mile of Social Media” is when local communities organize themselves on, say, Facebook.  High integrity is rewarded and low integrity is punished. Now you can reliably find other corporations to do your accounting, Human Resources, Marketing, and content design and distribution.

If you need to actually produce something “solid”, well there will always be a corporation willing to do that too.  All of these things are only a keystroke away.   So why isn’t everyone a corporation?

No, seriously……

We teach our kids to be good employees, not to become good corporations.  How do we expect social priorities to compete with Wall Street Priorities?

{ 30 comments }

Tweeting Economist April 11, 2010 at 10:37 am

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dan March 31, 2010 at 8:35 am

I was just watching a video of a Ralph Nader speech – one of his comments is that why isn’t the government teaching everyone to be a corporation? Corporations can deduct their lobbying expenses but if citizens lobby their congress persons or engage in political activism, they pay taxes on the expenditures. Corporations have every right that citizens have (except the 5th amendment) yet they do not physically exist…and you all know where Nader goes from there…. The point is, why not? Why not become a corporation – everyone!!!

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