Pass-Through Entity
TaxesA business structure (S-corp, LLC, partnership) where income passes through to owners' personal tax returns, avoiding double taxation.
Example
Example: On a $75,000 salary, understanding pass-through entity could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how pass-through entity works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.