A flow-through (or pass-through) entity transfers its income to owners. By allowing income to flow-through to owners, double taxation is avoided because only the owners incur tax liabilities. Even though there may be multiple owners within a flow-through entity, each owner is still taxed individually. Consider if you were to open a medical practice, and select one of the following flow-through entities of interest to you: partnership, Subchapter S corporation, or limited liability company (LLC). Assuming there are multiple owners, consider the tax implications for each of the owners in your selected entity. How can the entity limit the tax liability of each of the individual taxpayers? Does an owner have additional tax liabilities if the other individuals within the entity do not pay their taxes?