I would suggest it be free to "create" and uncreate entities.
What should cost the money is getting the people. If the recruit costs
were upped to say 100 each that should compensate for the free entity.
There are enough advantages to keep larger groups together than not.
ie combat bonuses, skill bonuses. If these were made slightly better....
Another point to make. Instead of making the recruit costs fixed at
50 or 100 like I suggest, why not making it a function of current population.
You could have it get cheaper for large cities and prohibitively expensive
in small communities. You could also make population a renewable resource.
It would be more realistic. I am sorry if I am just renewing a new arguement.
Dept of Mechanical Engineering
University of Western Ontario