An organization that does not pay income tax on its profits but passes them through to its owners who pay the tax at their individual rates is called a

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This type of organization is known as a flow-through tax entity, which includes partnerships, limited liability companies (LLCs), and S corporations. These entities do not pay income tax at the entity level, but instead pass through the profits and losses to the owners who report them on their personal tax returns at their individual tax rates. This avoids double taxation that occurs in traditional corporations.

An Organization That Does Not Pay Income Tax on Its