Flow-Through Entities In the first week, you studied different types of entities in the federal income tax system, including flow-through entities. 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. Suppose that you were to open a medical practice. 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? With these thoughts in mind: Post by Day 3 an evaluation of the tax implications of each of the owners in your selected flow-through entity. Provide a rationale to defend your position. Include in your evaluation an analysis of the difference between a partnership, Subchapter S corporation, and LLC, and how a different entity choice might change your evaluation of tax implications. Be sure to support your response with references to this weeks Learning Resources