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SESK: Stuff Everyone Should Know · sesk.info/biz-single-member-llc-disregarded

By default, how does the IRS treat a one-owner LLC for income tax?

As a disregarded entity for federal income tax, unless it elects otherwise.

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  1. As a C corporation
  2. As a disregarded entity ✔
  3. As a partnership

Why: Unless it elects otherwise on Form 8832, a single-member LLC is disregarded for income tax. An individual owner usually reports its business on Schedule C, like a sole proprietor.

Huh, didn't know that: For employment tax and some excise taxes, a single-member LLC is still treated as a separate entity.

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References

Answer: As a disregarded entity. Unless it elects otherwise on Form 8832, a single-member LLC is disregarded for income tax. An individual owner usually reports its business on Schedule C, like a sole proprietor.

  1. IRS: Limited liability company (LLC) www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
    an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832
    Checked 2026-10-11.

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