Although Prof. Bainbridge is a law professor, it might be interesting to ask him if he believes your larger thesis concerning LLCs.

If you clicked the link to his post, you would see he called my LLC data "very useful."

I am a regular reader of Professor Bainbridge, I find his blog very useful. I do not however, believer all that Professor Bainbridge believes. Propaganda is very useful in promoting an ideology. So Jade's question is unanswered. I have read the debate you both engaged in under Update 6 I believe, very useful. But the question remains, are these new LLC's a positive sign or a sign of desperate aging knowledge workers displaced by the outsourcing phenomenon. Will these LLC succeed or just generate money for Attorneys and Accountants who collect fees sooner or later. From what I have seen so far, none can claim to know as a fact that this is indeed positive or negative. So all claims at this point would seem to be motivated by ideological bias. That is, at this point it is propaganda. Perhaps useful to some.

Well, obviously all of the LLCs won't "succeed," as most new business fail within five years. That's the nature of things. But a business that fails after 3 years still generated economic activity for three years - still bought things from Office Depot and its suppliers, still employed a few people, still paid a payroll.

If you were to judge capitalism by the rate of business failure you would, of course, judge capitalism to have failed - yet it is obvious that capitalism has NOT failed and in fact has produced the highest standard of living and the most opportunity for the people of any economic system ever.

All I am pointing to with the LLC data is that there is a surge in formation of small business and solo entrepreneurs' home-based businesses. Period. Obviously, the more businesses that are started, the more will fail -- but ALSO the more will succeed.

Again, Mr. Hobbs, the good Professor may have called it "useful"--but in what context?

It is interesting from the point of view that LLC/LLP formation seems to be the way to go for most businesses as opposed to more traditional S- and C-corporations.

However, I very seriously doubt it remotely comes close to supporting your thesis that the jobs picture is much better than portrayed.

Again, Mr. Hobbs, the good Professor may have called it "useful"--but in what context?

You could always ask Bainbridge; that'd be a great deal less futile than asking Hobbs what he thinks Bainbridge meant by "useful".

You could always ask Bainbridge; that'd be a great deal less futile than asking Hobbs what he thinks Bainbridge meant by "useful".

I'm employing the Socratic Method. I'm very confident as to what the answer is.

It will be 'useful' for Mr. Hobbs to see, for himself, what the answer is rather than coyly suggesting the boom in LLC/LLP formation is some undiscovered and uncounted jobs boom.

I'm very confident as to what the answer is.

In order to teach, you first must have some credibility. Stop it, you're killing me.