the special rights and privileges they receive from the government.
They go much further, to the detriment of the company. By enticing business owners into incorporating, the banking system gains tons of control over these companies, most of which is hidden and rarely even noticed.
First off, there's the new requirements. You can't run a corporation with one man in charge. You have to have a board of directors and officers to hold various positions. This does two things.
First here is that it massively increases the cost to operate the overhead portion of the company. This keeps them basically poor unless they have a really awesome product margin.
Second, this 'poverty' during startup means they will need to go to some financial track to get funding. Guess who controls most of those? Yep, the banks. They either fund it directly with loans or they broker the investments for private investors. Should a public IPO be involved, they usually gain preferred share voting rights while the general population buys non-voting shares.
Third, this compartmentalizes the structure and separates the money counters from the operations people. By doing this, those bean counters, which always cite shareholder value as motive, ensure that most decisions are directed toward short term gains. This then places more profit back into the banks' hands because they got a cut.
The second main reason it's bad for a company to use all this diversified control is that it's virtually impossible to track any external influence in the decisions. As such, companies can pass the buck between departments and even down dept chains, to avoid personal liability. Keep in mind that the liability I'm referring to isn't just legal or harmful, it's industry wide collusion to create oligopolies.