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The formation of market principles and conditions of economic management provides for equal development of various forms of ownership and types of activity. A special place in modern economy of Russia belongs to small business. The determining factor in the development of small business is a system of taxation which takes into account the peculiarities of its existence and minimizes the tax burden as much as possible. The monograph is devoted to the most attractive taxation scheme for small enterprises - the simplified taxation system. The monograph is devoted to the peculiarities of application of the simplified system of taxation by the subjects of small business and its advantages in comparison with the traditional system of taxation. Special attention is paid to the development of small business in Russia in general and separately in Krasnodar region. The prospects of development of the simplified system of taxation and state support of small business are considered. It is recommended for students of higher and specialized secondary economic educational institutions, heads of enterprises, specialists in taxation and businessmen.