Pass-Through Entity

The term pass-through entity is used to describe any Business Entity that “passes through” income, deductions, credits, etc. to the owners.


Pass-through entities may pay no tax at all, literally “passing through” liability to their owners, or pay some tax under specified circumstances.


The main types of pass-through entities are the Partnership, Limited Liability Company (LLC), and S Corporation.


The Joint Venture and the Qualified Joint Venture also are pass-through entities.