pass-through entity

[ pas-throo en-ti-tee ]

noun

, plural pass-through en·ti·ties.

1. a business for which revenue is taxed as the personal income of the owner or owners rather than through corporate tax. : PTE

Word History and Origins

Origin of pass-through entity¹

First recorded in 1970–75, referring to income that “flows through” to owners or investors

Example Sentences

Southern Coal and Justice guaranteed the payment and performance obligations of Bluestone, a pass-through entity with no assets.

From Seattle Times

Southern Coal and Justice guaranteed the payment and performance obligations of Bluestone, a pass-through entity with no assets.

From Washington Times

Southern Coal and Justice guaranteed the payment and performance obligations of Bluestone, a pass-through entity with no assets.

From Seattle Times

Even better for businesses and other filers who pay estimated or interim taxes, quarterly payroll taxes and excise taxes, or pass-through entity elective taxes — all such payments due before October have been postponed as well.

From Los Angeles Times

To that end, Oberndorf's primary pass-through entity is Neighbors for a Better San Francisco, a super PAC responsible for putting up roughly two-thirds of the money dedicated to ousting Boudin.

From Salon