At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.

Name: At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.
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Quizplus · Accepted Answer

A partnership is inherently a pass-through entity for tax purposes, meaning the income, deductions, gains, losses, and credits flow through to the partners rather than the partnership itself paying the taxes.

At the Option of the Partners, a Partnership Can Be