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.

Question

Business

Hadley Vaughan

4 October, 12:18

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.

+4

Answers (1)

Know the Answer?

Kristopher Morales · Answer 1

D. Flow-through tax entity.

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.

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

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.