A HUF can be formed with just two members, one of whom is a coparcener. But for a business to be taxed like HUF, it must have at least two coparcers. For example, if the HUF contains only a man and a woman, then there is only one coparcener. Taxes will therefore not be taxed at the hands of the HUF unless the funds are received through the division of the HUF. It will be taxed at the hands of the sole coparcener.