Earlier quoted context omitted.
LLCs let you avoid having personal liability for accidents, corporate malfeasance, etc. They don't let you avoid having to invest your own money into the company to try to make it go, because no one else cares enough about your idea to do so, then lose it all if it fails. Having something like universal basic income absolutely does not reduce the risk to zero. What it does is it reduces the penalty for failure —failu…
LLCs do provide limitations towards losing your life savings or home. They create a buffer between personal and corporate assets. I think a key difference is the benefits are targeted towards those who are trying to create value, whereas UBI is much less targeted. At least from an economic sense, LLCs seem like a much more efficient mechanism.
They don't prevent you losing those things if you invested your life savings in the company, and you mortgaged your home to invest more. Which are both things that people trying to get companies off the ground do, especially if they don't otherwise have the means to do so.
If you're considering the primary purpose of a UBI as being encouraging entrepreneurship, then sure, they're not that efficient. I do not consider that to be its primary purpose, nor have I yet spoken to anyone who does. It is one of many, many benefits to a UBI that should be considered.