Sole Proprietorships, partnerships and limited liability partnerships are considered pass through forms of organizations because the income passes through to the owners and is taxed at the owner's individual tax rate.

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Pass through entities do not pay corporate-level taxes, and instead, profits and losses are passed through to the individual owners and are taxed at their individual tax rates. Sole proprietorships, partnerships, and limited liability partnerships are examples of pass through entities.

Sole Proprietorships, Partnerships and Limited Liability Partnerships Are Considered Pass