A pass-through or flow-through entity is a legal structure that does not pay income taxes at the business level, but passes earnings to its owners to be taxed at the individuals tax rate. Pass-through entities still file taxes but all tax affects are passed to the owner with a K-1 statement. Unlike C Corporations, pass-through entities do avoid double taxation. Below is a list of pass-through entity legal structures.

  • Partnership
  • S Corporation
  • LLC
  • Common Trust Fund
  • Regulated Investment Company

What is a k-1 statement?

Which legal structure is most advantageous for investors?

Why QSBS Can Make a C Corp More Advantageous Than Other Legal Structures for Investors?

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