Question

What is pass-through taxation

Answer 1

Answer:

A flow-through entity is a legal entity where income "flows through" to investors or owners; that is, the income of the entity is treated as the income of the investors or owners. Flow-through entities are also known as pass-through entities or fiscally-transparent entities.

Answer 2

Answer:

Pass-through taxation (or “flow thru taxation”) exists when the owners of sole proprietorships, partnership, limited liability companies and S-corporations pay taxes on all the business profits via their individual tax return forms.