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Simple English definitions for legal terms

Pass-through taxation

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A quick definition of Pass-through taxation:

Pass-through taxation is when a business doesn't pay taxes on its own income. Instead, the money goes to the owners of the business, who pay taxes on their personal income. This usually applies to small businesses like sole proprietorships, partnerships, and S-corporations. It's different from big companies that pay taxes on their income and then the owners pay taxes again on their personal income. Some states have their own rules for pass-through taxation. Owners of pass-through businesses may be able to choose to be taxed like a big company, but there are some benefits to pass-through taxation, like a tax deduction that can lower the amount of income the owners have to report on their taxes.

A more thorough explanation:

Pass-through taxation is a way of taxing businesses where the income earned by the business is not taxed at the entity level. Instead, the income is passed through to the owners of the business who pay personal income taxes on their share of the business. This type of taxation is usually applied to sole proprietorships, partnerships, and S-corporations.

For example, let's say you and your friend start a small business together. If your business is eligible for pass-through taxation, the income earned by the business will be passed through to you and your friend. You will both pay personal income taxes on your share of the income earned by the business.

Pass-through taxation is different from traditional corporations or C-corporations, where the company itself pays corporate taxes on the income earned by the corporation. The owners of the corporation are then taxed on the income they receive from the corporation, either through the sale of stock or distributions.

It's important to note that some states may have different regulations for pass-through taxation. In some cases, an entity that is eligible for pass-through taxation may choose to be taxed as a corporation instead.

One benefit of pass-through taxation is the Qualified Business Income Tax Deduction, which reduces the income that owners of a pass-through business must report on their personal income taxes by up to 20% if they qualify.

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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.
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