Hierarchical businesses lead to hierarchical state?

Does it make sense to say that the structure of the small determines larger structures?

No.

you can’t expect to have hierarchical sub-units and not get a hierarchical societal unit. Unless you live in denial of basic truths, of course

Fallacy of composition.

Fallacious fallacy. A fallacy of composition CAN arise (though not necessarily) when one infers that something is true of the whole from the fact that it is true of some part of the whole.

This is not “some part” of the whole, but the whole of the society composed of hierarchical businesses. Anybody not expecting a larger hierarchical structure from this seems to me insane.

Nonsense. You’re comparing apples to oranges, so you have a false analogy as well as composition fallacy.

The logical form you have used is always invalid: The part is X, thus the whole is X. There are times when parts do relate to their whole, but that must be demonstrated in some way other than argument from composition. Which you have yet to do.

You have also made the mistake of conflating society with government.

You must have failed reading class (and thus never even got to logic class LOL). I said THE ENTIRETY of the business system you advocate is based on hierarchical (wage-based) institutions, not PART.