Planning for Business Owners and Professionals, 7th ed., by Ted Kurlowicz, James E Ivers III, and John J. McFadden, 1999, Bryn Mawr, Pa.: The American College Reviewer: Ian M. McKechnie, The Hartford This seventh edition textbook is intended to be concise treatise that covers the legal and tax planning issues faced by the owners of small, closely held businesses and independent professionals a manner appropriate for the Chartered Life Underwriter and Chartered Financial Consultant curriculum. The authors are all attorneys and professors of taxation at The American College. Business planning topics, such as the products or services to provide, financing the operation, marketing issues, or operational issues, are outside the scope of the text. The material covered is intended to the financial services professional with guidance to assist the business owner. There are relatively few footnotes or links to statutes, case law, or IRS regulations. The text describes the topics but does not provide sample agreements, checklists, or even law and regulation citations. This book is not intended to make one competent to implement, develop, or resolve the various legal or tax issues discussed; to do so requires the skills of capable professionals such as an attorney or tax professional. However, it does provide an introduction to the various issues and describes many of the available options and choices that need to be made. Chapter 1 covers common business problems and planning objectives. A small business owner has many decisions to make-organizational structure, compensation, and taxation among them. The authors systematically discuss many of the factors that should be considered in making the appropriate choices. Chapter 2 discusses the forms an unincorporated business enterprise can take. The book covers both the traditional forms of business organization and the relatively new limited liability Company from a number of different viewpoints. Laws enabling limited liability companies (LLCs) have been adopted in all states to meet business owners' demands for liability protection, along with the flexibility of pass-through tax treatment for federal income-tax purposes. Costs to form an LLC will generally be higher than those for a general partnership or simple corporation. This cost differential may decline as attorneys become more familiar with LLCs and the legal research associated with their formation is reduced. Perhaps the most serious disadvantage cited for LLCs is the lack of a track record for such entities. There are few regulations, rulings, or cases on LLCs as entities. The material covered by the text is important to the owner of a small business. Choice of form of business could expose the owner or protect him or her from ruin and bankruptcy. The taxation differentials are significant. Furthermore, some of the choices are difficult and expensive to change. In keeping with the text's introductory and instructional objectives, the authors have not burdened the reader with an overwhelming amount of detail. However, as a result, the text may not be sufficient to guide the financial services professionals they wrote the book to develop and train. For example, when the authors state, Provisions of LLC laws vary greatly from state to state, thus making it difficult for a multi-state business operation to function, there is no table listing the specific statutory citations the reader would need to further investigate the law in his or her state. Perhaps in the future, the text will contain or refer to an analysis of state LLC laws. Some of the questions to be covered could include: * How many owners or members are required to form an LLC? * What must be covered by the agreement? * What is covered by the articles of organization? * What are the state limits on an LLC association's possibilities? * What are the key operating terms that are most significant in determining federal income tax treatment? …