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I know almost nothing about Sarbanes-Oxley, but I've seen critics claim that compliance costs nearly a million dollars for even the smallest public companies. C

I know almost nothing about Sarbanes-Oxley, but I've seen critics claim that compliance costs nearly a million dollars for even the smallest public companies. Can a $50k company survive in the current environment without remaining privately held by the founders or a small group of accredited investors?

fdr 15y ago
SOX is pretty extreme. I don't think it even applies to organizations that go over the 500 (soon to be 2000 with this bill, is that actually enough for super-microfunded kickstarter style startups?) investor limit, but I am no expert. I'm not asking for much. Maybe even just what is filed for tax returns would be enough, or maybe not (or maybe it's more than necessary). It just seems like no disclosure obligations at all (and I'm not even sure if that's what the bill actually provides) is too few obligations. Case in point, Facebook. For a long time -- may be even now -- authoritative numbers of numbers like revenue or profit that would be seen on their tax filing are probably only known to investors with sufficient leverage, AFAIK. Again, not intended to be an assertion; countervailing knowledge welcomed.