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. Abbreviation: PTE

Origin of pass-through entity

First recorded in 1970–75, referring to income that “flows through” to owners or investors
  • Also called flow-through en·ti·ty [floh-throo en-ti-tee] /ˈfloʊˌθru ˌɛn tɪ ti/ .

Words Nearby pass-through entity Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024