The business entity you select will determine whether there will be pass-through taxation. Partnerships, LLCs, and S corporations are examples of businesses that have pass-through taxes. In each of these forms of business, taxes are passed through to the owners, who then report the income or loss on their own personal income tax returns.
Unlike a C corporation where there may be double taxation, since the corporation pays taxes as a separate entity, and any shareholder receiving dividends is also subject to tax, an LLC or S corporation can pass through profits or losses without paying any additional corporate taxes.
According to the IRS, in the case of a pass-through entity classified as a partnership, tax returns must be filed by the 30th day of the fourth month following the end of a pass-through entity's taxable year. In the case of a pass-through entity classified as an S corporation, tax returns must be filed by the 30th day of the third month following the end of such a pass-through entity's taxable year.