Here’s my solution to the OP:
1) Form a general corporation all your clients should use to route their self employment earnings through. They will then not be double taxed, but not need to set up their own corporation. You can call it Berkshire Hasaway. Because, when there’s a will there’s a way. Also because, there is plenty of precedent for one corporation to do many different things. Advertise a lot so people know to do this in advance.
2) Sad to say, but American citizens should not invest in funds that are punitively taxed. Instead, if they want to contribute positively to Israel, they should give to charities that do result in a tax credit.
That should fix both your problems. LEGALLY.