This chapter utilizes the structure of life and valid inference to analyze the internal structure of Civil Society and the State as well as the relationship between the two institutional spheres. The chapter unpacks the passage from the Logic in which Hegel describes the State as a totality of inferences with the three terms of individuals, their needs, and the government. It is shown that the “system of needs” itself forms a quasi-living institutional system of estates centered on the division of labor. This system’s inadequacy motivates the role of the “police” and corporation as ethical agencies, forms of the Good, within Civil Society. While the move to the State overcomes the individualism of “needs,” the right of the individual remains in the dynamics of “settling one’s own account” in receiving from the State a return on one’s duty to the State. Hegel treats the State proper as a constitution consisting of three powers of government that form a totality of inferential relations that has the full structure of a living organism. The executive power is examined in detail as the particularizing element in the system.