Scenario 1:

Let’s say I have a great idea for a business. I want to give it a whirl, I’ve secured appropriate funding (investors and loans), and I am gonna make this thing happen!! I open my business and things are going GREAT! Things start going downhill, and then I get into trouble, financially. I try to sell the business, but no takers. I am done for. The bank and investors get all their money, but I’ve lost the business, my house, my savings, and my family and I are destitute and homeless.

Scenario 2:

The same scenario, except this time, I incorporate, in other words, I become a corporation. This means that I have some protections when going into business. If things go bad, the bank and investors get everything, except my personal stuff. Imagine things go downhill in this scenario. Several things can happen. I can still try to sell the business to someone who thinks they can make it work. If that doesn’t work, I go under, the bank and investors take ALL the business assets and I have to walk away, jobless, without an income, but my family and I are not homeless on the street. If I had 6 months savings, for just in case I lost my job, the bank and/or government can’t take that money. So, I don’t have to go on welfare or whatever, I can look for a job before my savings run out.

Scenario 2 is better for me, better for my family, and better for the country. If everyone whose business went under had everything taken away from them, there would be a ton more people on the public welfare rolls. This is BAD for everyone. Also, without these legal protections, why would anyone take the risk of starting a business? And, small businesses (having under 50 employees) provide 68% of the jobs in America. If no one started businesses, all those other people would be out of luck. It just makes sense to have legal protections that separate business from personal funds.

So, what are corporations? They are people who have legal protections against being destitute. That’s pretty much it, in a nutshell.

Saying that corporations are not people is like saying that workers are not people because they are a group. “Workers” are make up of people, and so are corporations. This business about corporations being people is only an issue because people don’t know what it means to incorporate. Businesses are run by people And, they aren’t wizards behind curtains, either. All the info you need about a corporation is public information. Take advantage of that, and dispel this idea that corporations are run by faceless, nameless entities. Nope. They’re run by real people, just like you and me.