How is a Single Member LLC Taxed? | Disregarded Entity

Attorney Thomas B. Burton discusses how single member LLC's are treated by default as disregarded entities for federal tax purposes by the IRS, and explains why a single member LLC treated as a disregarded entity is taxed similar to a sole proprietorship. This is why you will sometimes hear a single member LLC referred to as a "single member LLC taxed as a sole proprietorship" or a "single member LLC taxed like a sole proprietorship" or some variation on this theme. A Limited Liability Company (LLC) is a distinct and separate legal entity, formed by filing Articles of Organization under state law, unlike a sole proprietorship where there is no separate legal entity separate from the individual, however a single member LLC is taxed by a default as a disregarded entity in the eyes of the IRS, similar to a sole proprietorship. A single member LLC may opt out of the default tax status as a disregarded entity with the IRS by electing to be treated and taxed as a corporation.
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[@Mike-d2d]

A California married couple owns a out of state Wyoming LLC (partnership per EIN application). They also own a subsidiary LLC in California with WY LLC as member to be qualified as "doing business in California". Since the CA LLC is classified as disregarded. Can they classify their WY LLC as disregarded to simplify their tax filing (to avoid partnership, 1065 &K1)

[@Syed_Murtaza_bukhari]

How to fill w9 form I’m single member llc but I don’t see any option on w9 form new version of 2024 please help

[@LoveStarsWorld]

Superb!

[@user-ys1qu1rx1o]

Hey Thomas ! Very useful Video. I have a single member LLC in Wyoming as a non-resident Alien. My LLC was incorporated in June 2023 and I started actual operations in Jan 2024 as an Amazon FBA seller ; Could you let me know when I have to file for Federal taxes and which form I have to fill ? Will form 1120 be enough ? Do I have to file any other taxes apart from Federal tax filing ? Thanks in advance for your help !

[@BurtonLawLLC]

Hey congratulations on your new business and thanks for tuning in! As for your specific questions on which forms you need to file as a non-resident Alien I am not sure, we do not give tax advice or do tax preparation. Here is a blog post I found on the topic, the information appears to be relevant, but again do your own due diligence to determine if it applies to your situation. onlinetaxman.com/foreign-owned-llc-taxation I think you should discuss the specifics of your situation with a CPA/Tax professional. This is not legal or tax advice. Thanks!