03b – Taxability – Flow Through Entities / Pass Through

Taxability – Flow Through Entities / Pass Through

Flow Through Entities play a unique role in taxation.

✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level.
✅ However, the taxes are paid at the individual level by shareholders or partners.
✅ Income passes through to individuals via Schedule K-1, and taxes are reported in their personal returns.