It’s exam-grading time, so my focus is largely on that.  I did do my usual peruse of the news, though, and I found a whole host of news outlets discussing President Trump’s tax plan, which proposes to lower income tax rates on pass-through entities.  As one of the pieces explains: 

Pass-through income, for those of you who aren’t tax nerds, is business income that’s reported on a personal return. It comes from partnerships, limited-liability corporations and other closely held businesses, including Trump’s own family real estate operation.

First of all, knowing about pass-through income does not make you a tax nerd. I don’t think. 

Beyond that, though, limited liability corporations are not a thing.  And, limited liability companies (LLCs) are generally chosen for pass-though tax status, but they don’t have to be. They can chose to be taxed as C corporations at the federal level, if they wish.  Furthermore, partnerships, such as MLPs, and LLCs don’t have to be closely held. They can be publicly traded.  

Multiple outlets got on the incorrect”limited-liability corporations” bandwagon. Even Barron’s! Oh, well.. For now, I guess I will just continue to note that LLCs are still limited liability companies.  

Happy grading to those in the same boat, and good thoughts to the students taking our exams.  We really do want you to succeed, so please, show us what you know.