Abstract: The mainstream narrative of American system is the cornerstone of Western values and social science discourse after World War II. It neglects or conceals two important aspects of the origin and development of American system. First, American representative system is not generated from the natural law theories or the transplantation of British system, but from the feudal privilege and corporation equity structuresof colonies. Therefore, it is a System of Private Rights. Secondly, the commercial corporation-state system originated in Venice, developed in the Netherlands and Britain after the Glorious Revolution, matured in the US constitution. The nature of corporation-state determines the structure and relationship of the three powers of the United States and the characteristics of limited liability government. Both the advantages and disadvantages of American system and its development cannot be understood without the perspective of corporation-state.