That's the point of regulations. Or rather, why large businesses oftentimes support gov't regulation - to squeeze small businesses out so that the large corporations, who can hire people to take care of tedious things like HIPAA, Sarbanes-Oxley, monthly W-2 Payroll Withholdings, etc. I went crosseyed trying to handle all the payroll and taxes for a small corporation, and even with professionals doing it for us (costing $500/year for payroll, $1000/year for taxes), it's *still* a massive hassle. Guess who's responsible when Paychex sends out 1099s -- but instead of sending 1099s, majorly messes up and issues checks for the amount that should be on the 1099? Hint: not Paychex.
Due to friction / barriers to entry, it's very difficult to profitably run a small S Corp on less than six digits a year.
While you always hear some left-wing people complaining about large corporations, the highly regulated environments found in socialist countries are very favorable to the large companies at the expense of the small. If you contrast the number of top-100 corporations in 1950 in France and the US vs. the ones still around decades later, the majority of the US firms had vanished, but the majority in France were still around.
Socialism loves big corporations.