Glossary

Pass-Through Entity

A company that does not pay income taxes directly, but rather pays taxes through the owners of the company on an individual basis in an effort to avoid double taxation.

See Also

C Corporation, limited liability company (LLC), S Corporation.

Tips

Pass-through entities include sole proprietorships, partnerships, LLCs, and S Corporations. A C Corporation is the primary entity that is not a pass-through entity.

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