zlacker

>>modele+(OP)
There is a lot in here but turning a non-profit into a for-profit definitely should be challenged. Otherwise why wouldn't everyone start as a non-profit, develop your IP, and then switch to 'for-profit' mode once you got something that works? You don't pay income taxes and your investors get write offs.

>>silico+z11
You misunderstand how taxes work.

Unprofitable businesses of every sort don't pay income taxes. Startups like OpenAI don't pay income taxes because they don't have income. And investors don't get a writeoff merely for investing in a nonprofit; it's not like a donation to a nonprofit (which would be deductable).

>>stickf+Yb1
This is a great point but has me realizing I don't know how to square this with the idea that quite a few people are making enormous profits from unprofitable businesses.

It feels like there should be a way to tax these startups that exist as vehicles for cash grabs, but are not profitable.

>>evanli+Dh1
Do you have examples of people making enormous profits you are thinking of?

If you literally mean people (as in employees, executives, ect), they already are being taxed on income.

Unprofitable businesses always have expenses for labor, materials, ect. The distinction is that the company and owners arent making money, so they dont pay taxes. Those that do make money naturally do pay taxes.

What is the hard part to square?