Home › Forums › Discuss Austrian Economics, Step by Step › Limited Liability › Reply To: Limited Liability
August 7, 2012 at 8:53 pm
#17012
Member
There is some competition in state corporation laws with Nevada and Delaware in a “race to the bottom” to create the most corporation friendly laws to incorporate.
Interesting that in order to claim limited liability protection as an entity you must be sanctioned by the state as a registered corporation.
As Tom points out the free market could make these risk allocations instead of corporate laws,
Question then, would the state or private arbitrators enforce such risk allocation disputes?