I think you and I are in agreement ... I just worded my response poorly :-).

Mom and pop shops should not be limited to family members though ... some skills needed for a small operation might require outside the family help.

This is just an example, but a friend of mine would be hiring prospect #1 if I ever decided to start a landscaping business as he is a genius at both operating and maintaining large and small scale landscaping equipment.

That's just an example though ... if you ever hear of me starting a landscaping business, you may as well assume I have lost my mind as I know nothing about the details of it and would fail miserably regardless of who I'd hire. I hope you get my point though :-).

However, I agree 100% that if you're under the umbrella of something larger, you'd get the tax.