pass-through entity

noun

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

Word History

First Known Use

1974, in the meaning defined above

Rhymes for pass-through entity

• identity
• nonentity