flow through entity


An organization which regularly distributes a portion of its income to its investors. The way it is set up, usually only the investors are taxed on this income, not the entity itself. An S Corporation and a limited partnership are both examples of a flow-through entity.

Use flow through entity in a sentence

You need to try and make sure that you know of a way to make the flow through entity be smooth for the investors.

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We went ahead with our relationship with the flow through entity as it seemed like they would be a good fit for our operation.

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They structured the corporation so it would be a flow through entity. It was set up that way for tax purposes when paying out to investors.

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