Unincorporated entities are typically treated as flow-through entities for tax purposes.

Question

Quizplus · Accepted Answer

Unincorporated entities, such as sole proprietorships, partnerships, and certain limited liability companies, are generally considered flow-through entities for tax purposes. This means that the profits and losses of the business are passed through to the individual owners and reported on their personal tax returns, rather than being taxed at the entity level.

Unincorporated Entities Are Typically Treated as Flow-Through Entities for Tax