What are the entity choices available for an entrepreneur to minimize his tax liability? What lies beyond the conventional corporation or partnership forms for small businesses? Why should different incorporation forms be taxed differently? Should limited liability come together with a tax bill? These and other questions will be the basis for our class discussions as we review a range of current small business tax options.
We will explore the nature and origins of small business tax and compare the various developments that have allowed the American small business community to achieve political victory where large organizations have failed. These developments include the creation of various hybrid entities such as the S corporation, the LLC, and the LLP.
Our goal in this course will be to gain a deeper understanding of the manner in which small business income tax has developed, the political and social goals the government sought to achieve in granting special tax treatment to small businesses, and why small business tax preferences persist today.