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Simple English definitions for legal terms

conduit taxation

Read a random definition: in terrorem

A quick definition of conduit taxation:

Conduit taxation is a way of taxing where the owners of a company or entity are taxed for the income of the entity, instead of the entity itself being taxed. This method is used for partnerships, S corporations, and some limited liability companies. It means that the entity's income "passes through" to the owners, who are then responsible for paying taxes on it. This is different from double taxation, where the same income is taxed twice, once at the entity level and again at the owner level.

A more thorough explanation:

Definition: Conduit taxation is a type of taxation where the entity's owners are taxed for the entity's income without taxing the entity itself. This is also known as pass-through taxation.

Examples: Partnerships, S corporations, limited liability companies, and limited liability partnerships are taxed under this method. For instance, in a partnership, the income earned by the partnership is divided among the partners, and each partner is taxed on their share of the income. The partnership itself does not pay taxes on the income it earns.

Explanation: Conduit taxation allows for the income earned by the entity to be taxed only once, at the individual level, rather than being taxed twice, at both the entity and individual level. This type of taxation is beneficial for small businesses and partnerships as it simplifies the tax process and reduces the tax burden on the entity.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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