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

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

From Seattle Times • Aug. 16, 2021

"An S Corp is a pass-through entity — income passes through, typically to a single person, and it doesn't give you the same level of liability protections as an LLC," Kappel said.

From Salon • Sep. 16, 2020

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