Couple of things that need to be cleared up:
Libertarianism (as used in political philosophy and everywhere except the US) =/= anti-state, pro-laissez-faire capitalism, pro-business
Socialism =/= pro-government or state (necessarily)
Libertarianism is a political philosophy that falls under the heading of liberalism in general and holds individual liberty to be the goal of political organization. The hardcore laissez-faire types we have in the US are only one particular breed of libertarians. Left-libertarianism is a real political philosophy, and it's a shame that in the US the term has become synonymous with Tea Party types. (http://en.wikipedia.org/wiki/Libertarian_socialism)
Socialism is an economic arrangement where workers own the means of production rather than capitalists or authoritarians. This can be accomplished either with state ownership of the means of production as long as the state is itself a democracy, or by having the workers in each industry directly owning the means of production, for example by trade union as advocated by anarcho-syndicalists.
I'm a libertarian in that I think that the main goal of political organization should be to protect the freedoms of individuals and so I'm skeptical of any concentration of power for its potential to limit the freedom and autonomy of individuals. One such concentration of power that has the potential to limit the freedom and autonomy of individuals is capital accumulation. Therefore, I am against capitalism and pro socialized ownership of the means of production. But I'm also skeptical of economic power concentrated in the state for the same reason, and so I think that the individual workers at each industry should directly control the means of production. That's how I can say I'm a libertarian socialist. I'm also an equalitarian and pro-government protection against things that can harm individual autonomy. That's why I'm also a state-socialist about certain things like healthcare and education.
You should read Baruch Spinoza, Immanuel Kant, John Stuart Mill, John Dewey Bertrand Russell, John Maynard Keynes, Karl Popper, and John Rawls to fully understand what true liberalism is and see that liberal political philosophy didn't end with Locke, Jefferson, and Franklin.