- pass-through taxation
The taxation method applied to sole proprietorships, partnerships, and limited liability companies, where the owners pay taxes on all business profits on their individual tax returns (the business income "passes through" the business to the owners' tax returns). In contrast, a corporation, or a business that elects corporate-style taxation, is taxed directly on all business profits.Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & FinancesCategory: Business Cash Flow Problems & BankruptcyCategory: Business, LLCs & Corporations → Business Tax & DeductionsCategory: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.Category: Personal Finance & Retirement → Taxes → Tax Audits
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.