This article argues that Marx's initial critique of Hegel's Philosophy of Right (involving the acceptance of Hegel's dialectical transition from 'civil society' to the Rechtsstaat, or law-state but its re-explanation in political economy terms) shapes and in certain respects disables much of Marx and Engels' subsequent work. In particular, neither the national form of the capitalist state, nor its form as a Rechtsstaat, can be accounted for on the basis of the unfolding of the contradictions of the commodity without reference to the emergence of capitalism from the self-negation of feudalism. The resulting theoretical impasse may be relevant to Marx's failure to complete Capital, and led Engels in later work to project back the Hegelian tra...