Income earned by flow-through entities is usually taxed only once at the entity level.

Name: Income earned by flow-through entities is usually taxed only once at the entity level.
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Quizplus · Accepted Answer

Income earned by flow-through entities, such as partnerships and S-corporations, is not taxed at the entity level. Instead, the income passes through to the owners and is taxed on their individual tax returns. Therefore, it is not taxed only once at the entity level.

Income Earned by Flow-Through Entities Is Usually Taxed Only Once