reply to post by Gseven
I've proposed this before but it falls on deaf ears. I think our government needs to form a new type of corporate entity that truly allows
individuals to form partnerships and protect the entity itself. The new entity would have the following characteristics:
- All people who work in the business are partners of that business
- Partners are not paid wages, rather, they take an agreed upon percentage of the revenue
- A partner that leaves the entity can not cash out anything from the entity, nor can they claim any right to anything the entity has
- When a partner leaves they receive no benefit from the entity
- Because all the workers in the entity are partners of the entity they are not subject to labor and employment laws or regulations
What this would allow people to do is enter into contracts with each other collectively to engage in business, without the risk associated with
traditional corporate entities. In effect, this would be like a commune business model. Where a group of people work together toward a common purpose,
in pursuit of making their collective goals into reality.
If you and me wanted to start a business such as this we could begin the entity, add partners as the business grew, and not be concerned with a
partner leaving and taking the assets that have been built. This business model is already used in the United States but is reserved only for Lawyers,
Doctors and other professionals. This model of business (known as a PLLC) should be available to common folks looking to start some business
venture.
What would happen if common folk were allowed to operate this type of business model? Everyone could realistically be employed overnight.
Let's say there is a restaurant operating under the traditional partnership that exists today, that is owned by three people. These partners hire 25
people at minimum wage to keep their restaurant running. Those owners of the business do incredibly well financially while the employees are working
for way less then they probably are worth. Thus many working to give these three partners a higher standard of living.
Under the new type of entity proposed, lets say a group of 25 people all with the requisite skill sets to be able to operate a restaurant open next
door to the above mentioned hypothetical. These 25 people work without wages, and split profits based on agreed upon percentages at the end of the
week. Obviously, different people have different skills worth more so each person might receive slightly different percentages. If the business
expanded it could add more partners. If the business decreased, it could continue to allow people to work while all equally sharing in the reduced
revenue. If the business decided it needed fill-in type of positions it could hire people but must comply with all the labor and employment rules.
In this way, with this type of business model. Wealth will not filter upwards. Wealth will be disbursed amongst the people, and saving passed along to
consumers as the business could operate more cheaply. This is such an easy piece of legislation to write, because it is already in practice in the
USA, but would essentially destroy large corporate powers that are running the show today.
I could go on and on about this entity type but hopefully this is sufficient.