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

Question

Quizplus · Accepted Answer

Flow-through entities, such as partnerships, LLCs, and S-corporations, do not pay taxes at the entity level but instead, the income passes through to the owners and is taxed at their individual tax rates. Therefore, the income is taxed at both the entity level and owner level.

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