Comment on Why do big corporations get to claim losses, but small businesses can't?
alvvayson@lemmy.dbzer0.com 2 weeks ago
Because they manage to attract investment.
As long as investors are willing to give cash in exchange for equity, a company can operate on that cash and run at a loss.
QuarterSwede@lemmy.world 2 weeks ago
To clarify further, the IRS cares about the big businesses too and they get audited, at least, yearly by law. Also, small businesses can still operate if they have the capital to do so. The IRS is concerned about ensuring no laundering or otherwise nefarious activities are going on, which is why they get the spotlight when running in the red consistently.
lemmyman@lemmy.world 2 weeks ago
The IRS doesn’t audit annually, companies hire 3rd party auditors. And it’s not a tax requirement, it’s a public-company requirement.
BearOfaTime@lemm.ee 2 weeks ago
Thanks for the clarification. It’s a very important distinction.