enities that have flow-through tax structure



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    Paul Carson

    Hi Paulina ~ In response to your query, I too have found several ambiguous findings in different topics; hence, sometimes it feels like I am guessing my way through studying.  That said, the web keeps me happy, hungry and positive; and here are my findings to your valuable question, as follows:

    Flow-Through Tax vs. Entity Tax

    Flow-Through Taxation

    A flow-through entity is a legally designated entity type that allows business income to flow from the business to the business owners in the form of taxable income. The entity itself is not taxed and any business losses incurred or income earned is treated as the owner’s personal income/loss. The major types of flow-through business are:

    • Sole proprietor: an unincorporated business owned by a single individual
    • Partnership: an unincorporated business with multiple owners
    • Limited Liability Company (LLC): a type of business with limited liability like traditional c-corporation
    • S-corporation: a type of domestic corporation that can only be owned by U.S. citizens and cannot have more than 100 shareholders"
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    Paulina Mancilla

    Thanks Paul!

    It a journey these studies LOL

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