7.5. Companies
Ideas
- Companies of Software Democracy benefit from a simple and automated tax framework by the Code of the economic system.
- The goal is to encourage entrepreneurship and enable everyone to create a business.
- The governance rules of Software Democracy do not apply within the context of a company.
Individual businesses
Anyone can easily create an individual business to invoice their services to individuals or companies. This sole proprietorship can operate freely in all fields and employ other people.
The business is subject to four types of taxes or duties:
- Taxes related to incentives voted on by the digital democracy (e.g., tax to offset the emission of a pollutant).
- Corporate tax, starting at a given company size.
- Wage tax.
- Dividend tax.
Business accounting is simplified and integrated into the blockchain as much as possible, to simplify the process for individuals who want to work for themselves.
The individual business has its own current accounts and NFT wallets, which cannot be confused with those of the individual. It can be sold to an individual or another business.
Companies can cover personal expenses, but these expenses must then be considered as salary.
Corporations
When several people share ownership of a company, it becomes a corporation.
The rules for taxing wages are the same.
Multinational corporations
A corporation can be 100% owned by a foreign entity, but it will pay all its taxes and duties based on the activities carried out and the salaries paid on the national territory.
It can then redeploy its funds internationally without further taxation.
Corporate governance
Should companies be required to adopt the functioning of the Software Democracy?
Nothing prevents drawing inspiration from the governance model of Software Democracy, particularly for companies that wish to operate cooperatively. However, in many cases, a company will be more efficient in a "top-down" governance model, where a management team defines and imposes the directions of progress in a directive manner.
The democratic model of Software Democracy is a governance model that aims to protect society from abuses of power and corruption by giving power to the people, in the pursuit of consensus.
This model is in everyone's interest in terms of political and social governance, but it is not well suited for economic competition. A company is not a democracy!