Cartoon Guy Holding Stack Of Books

Power of Appointment

ABC Blocks

The taxation method applied to sole proprietorships, partnerships, and limited liability companies, where the owners pay taxes on all business profits on their individual tax returns (the business income “passes through” the business to the owners’ tax returns). in contrast, a corporation, or a business that elects corporate-style taxation, is taxed directly on all business profits.

Was This Term Helpful?

0 out of 0 found this helpful

Still got a question or concern?

Click here to contact us or go back to the main Glossary page.