Monthly Archives: January 2018

WHAT IS A PASS-THROUGH ENTITY?
Most businesses in the United States are organized as pass-through businesses, such as sole proprietorships, partnerships, limited liability companies and S corporations. According to the Brookings Institution, about 95 percent of businesses fall into that category. These entities are called pass-throughs, because their profits are passed directly through the business to the owners and are taxed on the owners' individual income tax returns. Income earned by a business organized...