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by sfj 2314 days ago
If you can be sued into oblivion for even starting a business, who would try? The corporate veil is intended to help the little guy.
2 comments

Until recently doctors and auditors weren't allowed to be limited-liability companies. There was still a ready supply of people willing to run those businesses as partnerships, with personal liability. There were good and bad firms, just not megascale conglomerates. The "liberalisation" of those rules didn't help the little guy, just the opposite: auditing became concentrated in a handful of giant companies, and quality predictably declined.
If you're doing oblivion-dollars damage to someone, why shouldn't you be accountable. Otherwise you're just making society pay the cost.
Between 36% and 53% of small businesses get sued every year according to this article: https://www.google.com/amp/s/www.forbes.com/sites/basharubin...

If suits only happened when businesses actually did something that truly did damage to society, then I'd agree. But reality is far from this.

Lawsuits are part of doing business, just like taxes and accounting.