During this holiday week, I was doing my best to balance my study and my job. Fortunately, "the power of habits" helps. I always write down a to-do list for myself to understand all the necessary tasks and things I have to do. "The Power of Habits" is also a name of a bestselling book. Due to the help of habits, we lower the tasks of our prefrontal cortex and boost our productivity. In addition, thank you for all your contribution, without your kindness, the world will be darker than it use to be.
Limited liability business forms are generally created by the government. Given this fact, to what extent is it appropriate for the government to interfere in the operations of such a limited liability entity?
First of all, I learned that a limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities, although in some cases, if a fraud is detected or if a company fails to meet its legal and reporting requirements, creditors may be able to reach the members' assets. An LLC is easier to set up than a corporation and provides more flexibility and protection for its investors. Entities such as Alphabet, the parent company of Google, and Exxon Mobil Corp, are both LLCs. The primary reason business owners opt to register their businesses as LLCs is to limit the personal liability of themselves and their members or investors, and the flexibility of taxation options since it prevents its owners from being held personally responsible for the debts of the company, and also allows all profits to be passed directly to those owners to be taxed as personal income. That avoids double taxation of both the company and its individual owners.
I think from the government's perspective, more business and companies probably means more income from taxation if they are thriving. Most governments don't want business owners to be out of their control to do unethical things such as fraud, breaking the law, or even tax evasion, which would be shooting on their own feet. And, instead of interfering in the operations of such a limited liability entity, I reckon that governments can treat those entities as part of their assets. They can bring you tax incomes, provide jobs, produce useful goods, and more. However, if one of the assets starts to lose its functions or even hurt others like a virus, consuming the nutrient of its host, the governments must do something to stop and block it. Some regulatory agencies such as Consumer Product Safety Commission, Environmental Protection Agency, Equal Employment Opportunity Commission, Federal Deposit Insurance Corporation, Federal Trade Commission, Securities and Exchange Commission, and more, work together like the immune system inside the human body. Like an army that protects its people against possible danger, I believe what the governments should do is to monitor as anti-virus software, rather than to over interfere what do people use laptops for.
Reference
Fernando, J. (2021, December 7). How a limited liability company (LLC) works. Investopedia. Retrieved December 28, 2021, from https://www.investopedia.com/terms/l/llc.asp
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