pass-through entity
noun
a business for which revenue is taxed as the personal income of the owner or owners rather than through corporate tax. PTE
pass-through entities
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pluralof pass-through entity.plural
The grammatical form denoting more than one person, place, thing, or idea.
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
As pass-through entities, these businesses aren’t taxed at the corporate level and distribute high yields in the 5% to 7% range.
From Barron's ● Jun. 5, 2026
But states including New York allow pass-through entities to pay tax at the entity level, which is fully deductible on federal tax returns.
From The Wall Street Journal ● Apr. 5, 2026
Both are considered pass-through entities, where the partnership reports activity but doesn’t pay any corporate tax.
From Washington Times ● Jul. 28, 2023
Trump’s network has included hundreds of businesses, pass-through entities — the income of which is reported on individual, not corporate, returns — foreign and domestic properties, contracts and complex business interests.
From Seattle Times ● Dec. 22, 2022
Small businesses successfully stripped higher taxes on pass-through entities, while bigger firms succeeded in keeping the corporate rate at 21 percent.
From Washington Post ● Aug. 5, 2022
