flow-through entity
noun
US
: pass-through entity
Since most entrepreneurs use a flow-through entity, such as a partnership or S corporation for their business, every dollar of deduction actually reduces your personal income tax.—
Tom Wheelwright
Tom WheelwrightExamples of flow-through entity in a Sentence
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This change introduces new reporting requirements, particularly affecting flow-through entities such as trusts and estates.
—
Matthew Erskine,
Forbes,
28 Mar. 2024
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Matthew Erskine,
Forbes,
28 Mar. 2024
Cite this Entry
“Flow-through entity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/flow-through%20entity. Accessed 5 Jul. 2026.
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