pass-through entity

noun

Definition of pass-through entity

US law
: a business entity (such as a sole proprietorship, partnership, or S corporation) whose income is taxed as the owner's personal income at the individual rate rather than as business income for federal income taxes
  • a law that provides tax breaks to pass-through entities
called also flow-through entity, pass-through

First Known Use of pass-through entity

1974

in the meaning defined above

See Words from the same year
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