Corporation status is a trap. State controls what it creates

From a famous court case, we learn that states control the corporations they create. What this seems to mean is that when one asks the state for corporate status, there are rules and taxes associated with that status. Almost seems like ‘titles’ of British ‘nobility’, in that people were granted things, but also taxed on the same. Better to get insurance than incorporate into the state.

“We are of opinion that a statute of a State granting powers and privileges to corporations must, in the absence of plain indications to the contrary, be held to apply only to corporations created by the State and over which it has power of visitation and control… . The legislature in such cases is dealing with its own creations, whose rights and obligations it may limit, define and control.” To the same effect are Catlin v. Trustees of Trinity College, 113 N.Y. 133; White v. Howard, 46 N.Y. 144; Matter of Balleis, 144 N.Y. 132; Minot v. Winthrop, 162 Mass. 113; Dos Passos, chap. 3, sec. 34. If the ruling of the Court of Appeals of New York in this particular case be not absolutely binding upon us, we think that, having regard to the purpose of the law to impose a tax generally upon inheritances, the legislature intended to allow an exemption only in favor of such corporations as it had itself created, and which might reasonably be supposed to be the special objects of its solicitude and bounty.” (source)