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pass-through entity

[ pas-throo en-ti-tee ]

noun

, plural pass-through en·ti·ties.
  1. a business for which revenue is taxed as the personal income of the owner or owners rather than through corporate tax. : PTE


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Word History and Origins

Origin of pass-through entity1

First recorded in 1970–75, referring to income that “flows through” to owners or investors

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pass-throughpass through one's mind