A pass-through entity refers to a business that does not pay income tax of its own. Its income, losses, credits, and deductions “pass-through” to each business owner’s personal tax return, where its profits are taxed according to each owner’s individual income tax rate. Pass-through entities such as sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and S Corporations may be appealing to your entrepreneurial clients. In this session, Nellie Akalp of CorpNet.com, will cover details to help you get a better understanding of pass-through entities.

Learning Objectives:

• Identify the entity types that offer pass-through tax treatment


• Define how business owners get paid 


• Determine tax treatment for both income and self-employment taxes 


• Recognize the advantages and disadvantages of operating as a pass-through entity