The idea is that all individuals are free to live as they want as long as they cause no harm or threat of harm to another individual or their property. This naturally includes rules against murder, rape, and theft.
As you will be aware, the problem is that the enforcement of those core rules needs a entity that uses violence. But once you create such an entity, you have to live with the possibility that this entity misuses its power, so you need to set up controls, the seperation of justice, executive, and legislative and all the other characteristics of a state.
And of course if you don't create such an entity one will arise on its own as people seek protection from one another in agencies.