Pass-through taxation

{
  "id": "MLC-T-LAW-003646",
  "term": "Pass-through taxation",
  "field": "Law",
  "definition": "A system of taxation where the income or losses of a business entity are not taxed at the entity level but are instead passed through directly to the owners' personal income tax returns. The owners then pay taxes on their share of the business's profits at their individual income tax rates. This structure avoids the double taxation often associated with C corporations.",
  "url": "https://mlchart.com/terminology/law/pass-through-taxation/"
}