There's multiple ways to organize as business corp.   I would try to pretend I'm an expert.  Each has its own conditions and tax treatment.  Even if the principle is taxed as income, the total value won't be known until the stocks are sold.   Then we have the pass through clause for hedge manager who's pay is paid as capital gains (and
Ironically avoids earnerd income tax rates)

It a jumbled mess for a purpose, most of us don't fully understand the consequence.   No wonder the one percent is asking us only to view them as 'smart'.   Now now kids, don't you bother your little heads trying to figure out what we do.