You don't have to be a corporation to hire people - think sole proprietorship.

I've been thinking that it might be an interesting experiment to apply some of the restrictions that we have only to corporations, but allow more leeway to individuals. So e.g. if you're a sole proprietor, you can arbitrarily discriminate in employment or service (it's your personal freedom of association), but if you register as an LLC, then that comes with the usual strings attached (since an artificial entity doesn't have proper personhood and any rights associated with that).

I suspect most businesses, even small, would still be LLCs.