➡️ What type of taxes do pass-through entities have?

➡️ How do you typically pay taxes on a pass-through entity?
➡️ Is it acceptable to pay taxes from the business bank account?
➡️ What is the technically correct way to pay taxes for a pass-through entity?
➡️ How does the IRS view paying taxes from the business bank account?

When a business is set up as a pass-through entity, the business itself does not pay federal taxes; all of the profits pass through to the business owner, who pays taxes on the income on their personal tax return. The owner can choose to pay these taxes out of their business bank account or by transferring the money to their personal account and then paying out of that. That is technically the correct way to do it would be to take the money as an owner's draw and then pay the taxes out of the personal account. However, paying the taxes out of the business account is also acceptable!