if a company is a pass - through entity, that means _________. (select the best answer.) the companys income…

if a company is a pass - through entity, that means _________. (select the best answer.) the companys income is taxed twice - once on the business entity, and again on the personal tax forms of its owners. the companys income is not taxed as a separate entity. it is taxed only on the personal tax forms of its owners. the companys income is not taxed at all.

if a company is a pass - through entity, that means _________. (select the best answer.) the companys income is taxed twice - once on the business entity, and again on the personal tax forms of its owners. the companys income is not taxed as a separate entity. it is taxed only on the personal tax forms of its owners. the companys income is not taxed at all.

Answer

Brief Explanations:

A pass - through entity is not taxed as a separate entity. Its income passes through to the owners who report and pay taxes on their personal tax forms. Double - taxation (taxing the business entity and then the owners) does not occur, and the income is not untaxed.

Answer:

The company's income is not taxed as a separate entity. It is taxed only on the personal tax forms of its owners.