Which structure allows owners to benefit from pass-through taxation?

The structure that allows owners to benefit from pass-through taxation includes S corporations, partnerships, and LLCs, making the answer that encompasses all three correct. Pass-through taxation means that the income of the business is not taxed at the corporate level; instead, it "passes through" to the individual owners' tax returns, where it's taxed at their personal income tax rates.

This approach is advantageous because it avoids the double taxation that typically occurs with C corporations, where income is taxed at both the corporate level and again when distributed to shareholders.

S corporations provide the benefit of pass-through taxation to their shareholders while also limiting their liability, thus combining the advantages of a corporation and a partnership. Similarly, partnerships inherently function as pass-through entities, where profits and losses are directly reported by the partners on their individual tax returns. LLCs also offer pass-through taxation, providing flexibility in how the business is taxed while also protecting owners from personal liability.

As a result, all of these business structures—S corporations, partnerships, and LLCs—enable owners to benefit from this tax treatment, confirming that the correct response is indeed that all of the listed options provide for pass-through taxation.