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pass-through entity

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

noun

pass-through entities plural
  1. a business for which revenue is taxed as the personal income of the owner or owners rather than through corporate tax. PTE


Other Word Forms

Inflected Forms

noun

Etymology

Origin of pass-through entity

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

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.

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

From Salon • Dec. 2, 2024

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

From Seattle Times • Aug. 16, 2021

Ortt faces three felony counts of filing a false instrument, for allegedly arranging a no-show job for his wife and funneling payments to her through a pass-through entity.

From Washington Times • Mar. 29, 2017

The appeal of a pass-through entity like the Wisconsin Club for Growth is obvious.

From US News • Sep. 16, 2016

"The statement that Koch is a pass-through entity implies direct knowledge of Koch's legal and tax status, which would appear to be a violation," the senators wrote.

From Washington Post • Sep. 24, 2010

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