Does this sound right? A flow-through entity (also known as a pass-through entity) is a business structure where the income, deductions and credits "flow through" to the owners or investors, rather than being taxed at the entity level. The most common types of flow-through entities are partnerships, S corps, and certain limited liability companies. There is no entity level tax. Income is reported on the owner's personal tax return. Owners include their share of the entity income, deductions and credits on their individual tax return. The aggregate concept treats partnerships as an aggregate of its individual partners rather than it's own entity. Each partner is taxed on their share of the partnership income regardless of whether it is distributed. Ownership is reflected based on individual ownership interests and personal tax situations. The entity concept treats the partnership as a distinct and separate entity from its owners. The partnership computes its income, expenses and deductions at the entity level. The partnership determines its taxable income, when is then allocated to the partners. The partnership may have its own obligations, such as filing partnership returns (form 1065)