LLC
Overview
Check Pricing
3-Step Process
Why LegalZoom?
Education Center
LLC Education
FAQ
Glossary

#
Free LLC Guide
Click here to download our comprehensive LLC Guide.
Why LegalZoom

LLC Glossary

PASS-THROUGH (LLC)

Sole proprietorships, partnerships, LLCs and S corporations are pass-through entities for federal income tax purposes. This means these entities are not subject to income tax. Rather, the owners are directly taxed individually on the income, taking into account their share of the profits and losses. This avoids double taxation.