Catholic University Law Review Volume 44 Issue 2 Winter 1995 Article 3 1995 Entity Classification: The One Hundred-Year Debate Patrick E. Hobbs Follow this and additional works at: https://scholarship.law.edu/lawreview Recommended Citation Patrick E. Hobbs, Entity Classification: The One Hundred-Year Debate, 44 Cath. U. L. Rev. 437 (1995). Available at: https://scholarship.law.edu/lawreview/vol44/iss2/3 This Article is brought to you for free and open access by CUA Law Scholarship Repository. It has been accepted for inclusion in Catholic University Law Review by an authorized editor of CUA Law Scholarship Repository. For more information, please contact
[email protected]. ENTITY CLASSIFICATION: THE ONE HUNDRED-YEAR DEBATE Patrick E. Hobbs* I. Introduction ................................................. 437 II. Evolution of the Tax Definition of the Term "Corporation".. 441 A. The Revenue Act of 1894 ............................... 441 B. The Corporate Excise Tax of 1909 ....................... 452 C. After the Sixteenth Amendment: A Case of Floating Commas and Misplaced Modifiers ....................... 459 D. Developing a Corporate Composite ..................... 468 III. The Failure of the Resemblance Test ........................ 481 A. The Professional Corporation ............................ 481 B. The Limited Partnership ................................. 491 C. The Limited Liability Company .......................... 510 IV . Conclusion .................................................. 518 I. INTRODUCTION One hundred years ago, in the Revenue Act of 1894,1 Congress en- acted our Nation's first peacetime income tax.2 Although the Supreme Court declared it unconstitutional within a year of its enactment,3 at least * Associate Professor of Law, Seton Hall University School of Law. B.S., 1982, Se- ton Hall University; J.D., 1985, University of North Carolina; LL.M., 1988, New York Uni- versity.