Yesterday, 04:30 PM
An LLC is a corporation. And there are limits to individual bankruptcy. If your LLC or corporation goes bankrupt, typically your personal assets aren't touched. A corporation you 100% own can go bankrupt and it not affect your credit. That's not at all true for personal bankruptcy.
When the business model is dependent upon the largess of government. For example, a patent is, by definition, anti free market. So is copyright. It's got nothing to do with the size of the business per se, but government largess allows business to grow larger than they otherwise would. Free market depends in part on risk. The more owners are shielded from risk the less accountable they become. That's the problem
Consider an actual case involving Section 230 of the CDA. Prodigy, an online service from the 1990s, was sued over a libelous message that one of their users posted. The state court found them libel because Prodigy had deleted some messages which, according to the state court's logic, made them an "editor" because they were exercising "editorial control." Prodigy countered that they had 60,000 messages a day and couldn't monitor all of them. They still lost. That's what prompted the passage of Section 230 in the CDA. Congress wanted online services to have a freehand to take down "offensive material" without being opened up to liability. Really Prodigy had a better defense than would RonPaulForums.com if Section 230 was repealed. RPF can't claim there is such a volume of messages that they couldn't all be moderated.
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