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INFORMATIVE RETURN PASS through ENTITY
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People also ask
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What is a pass-through entity return?
A pass-through entity is a business structure legally akin to the individual(s) who owns it. It gets taxed at individual income tax rates and reports its income on the individual income tax returns of the business owner(s).
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What does it mean that an LLC is a pass-through entity?
Limited liability companies (LLCs) are what's called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC collect its proceeds as income and then pay personal income taxes on the results.
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Is pass-through entity tax a good idea?
One of the main tax benefits of electing a pass-through business structure is avoiding double taxation. Business earnings are only taxed once, on the owner or shareholder's personal tax return.
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What is NYS pass-through entity tax?
Key Features of NY PTET: Eligible pass-through entities can elect to pay tax at the entity level on their New York source income, altering the traditional flow-through taxation model. In essence, the entity is withholding and remitting New York State income tax on the partner/shareholder's behalf.
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