Tax Filings for a Single-Member LLC — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Tax Filings for a Single-Member LLC

Get PDF file

by on
in Small Business Tax

Q. In your Special Report on LLCs (see 9/18/06 issue), you say that SMLLCs are exempt from federal tax filing. I believe that this is not true, although they can choose which type of entity they want to be taxed. Which is it? Anonymous

A. A single-member limited liability company (SMLLC) can choose to be treated as either a corporation (which is generally not advisable) or a “disregarded entity.” To be treated as a corporation, the SMLLC must file Form 8832 and elect to be classified as a corporation. Otherwise, the SMLLC is treated as a disregarded entity, which, generally, is taxed as a sole proprietorship. As we stated in the Special Report you cite, expenses and income in the sole-proprietorship scenario are reported on the taxpayer’s Schedule C. Note: Space and reader considerations allowed our Special Report to cover LLCs only in general terms. If you’re considering a switch to the LLC format, you should consult with a tax pro for all the details.

Related Articles...

Leave a Comment

Previous post:

Next post: