Results for tag: "Pass Through Entities"

Pass Through Entities (PTEs) are a type of business structure that allows income to pass through to the owners without being taxed at the corporate level. This type of structure is popular among small businesses, as it allows them to avoid double taxation. PTEs are also known as flow-through entities, as the income passes through the business to the owners. PTEs are typically organized as partnerships, limited liability companies (LLCs), or S corporations. These entities are not subject to corporate income tax, but the owners must report their share of the income on their individual tax returns. The owners are also responsible for paying self-employment taxes on their share of the income. The accounting for PTEs is different from that of a corporation. PTEs are not required to prepare financial statements, but they must keep accurate records of their income and expenses. The owners must also report their share of the income on their individual tax returns. Some companies in the PTE market include H&R Block, Intuit, and TaxAct. These companies provide tax preparation services for PTEs, as well as other types of businesses. They also offer advice and guidance on how to set up and maintain a PTE. Show Less Read more