Question

An organization that does not pay income tax on its profits but passes them through to its owners who pay the tax at their individual rates is called a

a. tax-free business venture.
b. professional corporation.
c. business corporation.
d. flow-through tax entity.

Answer 1

D. Flow-through tax entity.

Step-by-step explanation:

An organization that does not pay income tax on its profits but passes them through to its owners who pay the tax at their individual rates is called a flow-through tax entity.