Flow-Through Entity
/ˈfloʊ θruː ˈɛn.tɪ.ti/
Definitions
- (n.) A business entity that passes income directly to owners or investors, avoiding corporate income tax.
A flow-through entity allows profits to be taxed only at the individual level.
Forms
- flow-through entity
- flow-through entities
Related terms
See also
Commentary
Flow-through entities are important for tax planning as they help avoid double taxation by allocating income directly to owners.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.