All unincorporated entities are generally treated as flow-through entities for tax purposes.

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Flow-through entities refers to entities that do not pay income taxes at the entity level. Instead, the income is passed through to the owner's personal tax return and taxed at their individual tax rate. Unincorporated entities such as sole proprietorships, partnerships, and LLCs are considered flow-through entities for tax purposes.

All Unincorporated Entities Are Generally Treated as Flow-Through Entities for Tax