This allowed him to avoid double-taxation (since the S Corp is a pass-through entity that pays no tax).

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Unfortunately, the school was just a pass-through entity in this case, and the money was ultimately destined for someone in the classroom.

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Because you own this business by yourself (or with just a handful of partners) you have organized it as an S-corporation, which is a pass-through entity.

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For small business owners who operate as a pass-through entity (a partnership or a sub S), the bonus depreciation deduction ultimately comes through on their individual tax returns.

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In federal tax terms, it's a "pass-through" entity, meaning it doesn't pay federal corporate-income taxes at all.

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An LLC's profits can be taxed as a corporate entity (a C corporation) or as a "pass-through" entity (an S corporation), meaning that the company avoids paying taxes on both corporate profits and the owners' personal income.

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That's because an LLC's profits can be taxed as a corporate entity (a C corporation) or as a "pass-through" entity (an S corporation), meaning that the company avoids paying taxes on both corporate profits and the owner's personal income.

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But there are other reasons: you could be a beneficiary of a trust or estate or a shareholder or partner in a pass through entity and just now getting your Schedule K-1.

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