What Does Pass Through Entity Mean?

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What does Pass Through Entity mean? Read on to discover the definition & meaning of the term Pass Through Entity - to help you better understand the language used in insurance policies.

Pass Through Entity

Pass Through Entity

A corporation that is disregarded for purposes of calculating taxable income. The income earned in a pass-through entity is attributed to its shareholder or ultimate parent and taxed at that level.

We hope the you have a better understanding of the meaning of Pass Through Entity.

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