I can at least answer the last question. "Pass-through" refers primarily to taxation. An LLC tries to combine the benefits of Corporations and Companies. The C

I can at least answer the last question. "Pass-through" refers primarily to taxation. An LLC tries to combine the benefits of Corporations and Companies. The Company benefit is that any income is effectively the owners' income: it passes through the company to the owners, who then file taxes on the income as if it was a paycheck. This is the "pass through" idea; that income (and taxation) is passed directly to the owners. The corporate benefit is what gives LLCs their name. In cases of litigation, even though the revenue stream is passed to the owners, it is the business that is sued as an entity. This then "limits" the liability of the business owner.