Partnership and Other Pass-Through Entities Taxation

Summary

This practice note discusses the tax characteristics of pass-through entities, including partnerships, multi-member series LLCs, S corporations, real estate investment trusts, and regulated investment companies. Over the last two decades, the use of pass-through entities to minimize taxes has become very popular. Unlike pass-through entities, C corporations are subject to tax themselves, and their shareholders are also generally subject to tax on dividends and gains from the sale of C corporation stock.