Are legal entities whereby the income flows to owners or investors. implication that income is treated as either income of the owners or revenue for the investors (Siegel amp. Shim, 2010). Basing on the local tax regulations, the structure can avoid dividend tax and even the double taxation since only investors and owners are always taxed on the income. They are usually considered as non-entities for tax purposes since they are not taxed but taxation flow through to other tax returns. Types of flow through entities include limited partnership, general partnership, scheme corporations, limited liability companies and master limited partnerships.This is a partnership where some of the partners are general whereby they are entitled to manage and control business while other partners are limited to the contribution of capital only. A legal document that stipulates specific requirements are usually drawn up for limited partnership.It a partnership whereby almost all partners has gone limited responsibilities depending on the jurisdiction. In this partnership, no single partner is held responsible for another partner’s misconduct or rather negligence.It should be noted that pass through entities pass profit/loss to owners/investors/shareholders and therefore do not pay tax on its income. The owners of the pass-through entities move items on their income tax return. Partners in their individual capacity are subject to tax as per their distributed shares through the net income of the entity.When it comes to corporations, taxes are charged differently for other kinds of business structures. A corporation is the only business type that must pay its income tax on the profits generated during a particular fiscal period.It should be noted that corporate is a separate entity from its owners. the tax is charged on all profits than

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