New Census data shows that pass-through entities (proprietorships, partnerships, LLCs and sub-S corporations) added more than 54,000 jobs between 2012 and 2015, accounting for 98 percent of all private sector gains.  Most private entity types have seen little growth since 2012 but employment at the pass-through entities shot up by 12.7 percent. Kansas is also performing much better against the national average since the exemption went into place, going from 52 percent of the national average (2.4 percent vs. 4.6 percent) prior but is since at 92 percent of the national average (12.7 percent vs. 13.9 percent).

2015 PassThrough Jobs

Kansas Department of Revenue data indicates that a small portion of the job gains at pass-through entities could be attributable to companies converting from C-corporation status to take advantage of the exemption on pass-through income, but not much.  KDOR data on C-corp conversions for 2012 through 2014 shows just a slight increase in the rate of conversion to pass-through; it was 1.3% in 2012 and the average for 2013 and 2014 was 1.7%.

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