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

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The first known use of pass-through entity was in 1974

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Cite this Entry

“Pass-through entity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/pass-through%20entity. Accessed 28 Nov. 2020.

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