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by cycomanic 196 days ago
> Those are single-member LLC revenue numbers. You can get $10M in revenue just by being in a low-margin business. For industries with a 1% margin that's $100k a year in net income, i.e. wages and benefits for one person.

I'm not sure I understand your argument? Wages come out of revenue not income? So the $100k would go to the owners, but as captical gains not wages.
1 comments
AnthonyMouse 196 days ago
It's a single-member LLC. The person doing the labor and the person who owns the company are the same person and whether they pay themselves the money as wages or dividends is not really the issue.

A thousand employees is a business on the scale of a mid-sized bank or companies like VeriSign or LendingTree or Iridium Communications. Companies with something like a billion dollars in revenue. $10M in revenue is a small business.

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JumpCrisscross 196 days ago
> It's a single-member LLC

Maybe exempt pass-throughs?

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AnthonyMouse 196 days ago
Why do it for entities of that size at all? It's not about their type of incorporation, it's about not adding more paperwork for small businesses.

You're using or. That means you don't need a low revenue number. You could use $10B because nearly all of the relevant companies would already be in on the basis of the number of employees regardless, so all you need is to catch the few outliers that manage to be major companies without hitting the employee threshold.

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JumpCrisscross 196 days ago
> You could use $10B because nearly all of the relevant companies would already be in on the basis of the number of employees regardless

Out of curiosity, why $10bn versus $1bn?

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