pass-through entity

American  

[pas-throo en-ti-tee] / ˈpæsˌθru ˌɛn tɪ ti /

noun

plural

pass-through entities

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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Etymology

Origin of pass-through entity

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

Example Sentences

Like a sole prop, a partnership is considered a pass-through entity for tax purposes.

From Salon

An S corp is a type of corporation that’s considered a “pass-through” entity, where profits and some losses flow through to the owners.

From Salon

Even better for businesses and other filers who pay estimated or interim taxes, quarterly payroll taxes and excise taxes, or pass-through entity elective taxes — all such payments due before October have been postponed as well.

From Los Angeles Times

So the corporation found a small nonprofit, Freedom Project, to sign the deal as a pass-through entity.

From Seattle Times

Southern Coal and Justice guaranteed the payment and performance obligations of Bluestone, a pass-through entity with no assets.

From Seattle Times