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How would that work out in practice? Sounds highly unlikely.

• MiroF 7y ago
  Have you heard of contracting practices in the US? Rather than "highly unlikely", this is the norm for tech companies that want to skirt corporate responsibility.
  • AnthonyMouse 7y ago
    That's an unrelated issue. In this context that could be avoided simply by counting more than half time individual contractors as employees when measuring entity size.
• IshKebab 7y ago
  Splitting large companies into smaller ones to get tax breaks and other incentives is extremely common. For example in the UK there are tax breaks for companies that spend more than a certain percentage of the revenue on research. Just below the threshold? Simple! Split out a research arm!
  • AnthonyMouse 7y ago
    This is common because splitting a large company into five or six smaller ones is feasible, since the overhead of doing so is much smaller than even the smaller entity size. Setting the threshold such that a company the size of Google would have to split their operations into thousands of individual corporations would be a lot less feasible. You could also avoid the issue by limiting the exemption to corporations not owned in any part by a corporation that wouldn't itself qualify for the exemption, since the point of the exemption is to help real small entities and not subsidiaries of huge publicly traded corporations.