# Pass-through entity

> Pass-through entity — An entity whose income is taxed to its owners instead of itself — a partnership, an S corporation, a disregarded entity. Each owner is taxed on their share of the income, which need not match the cash the entity pays out.

Source: https://lopifi.com/glossary/pass-through-entity
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is pass-through entity?** In accounting, pass-through entity means an entity whose income is taxed to its owners instead of itself — a partnership, an S corporation, a disregarded entity. Each owner is taxed on their share of the income, which need not match the cash the entity pays out.

## Also known as

- Flow-through entity

## Words this system refuses for it

- tax-free
- untaxed

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** disregarded-entity, s-corporation