Single-Member LLC (US)

  • Published on Jul 13, 2022
  • 1 minute(s) read
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Single-Member LLC

You can form an LLC, even if you’re the only member, and choose a corporate tax status. As a Single-Member LLC, you are considered a “Disregarded Entity.” You can also elect for your LLC to be classified as a corporation.

LLC as a Disregarded Entity:

A Disregarded Entity means that your LLC is a separate legal entity from you as the owner.

  • You have the same tax obligations as a sole proprietorship
  • You can protect your personal assets from business liabilities with this structure
  • No need to file a separate business tax return
  • Activities in the LLC should also be reflected on the owner’s federal tax return
  • You can use your Social Security Number when filing for taxes if you don’t have employees

LLC as a Corporation:

  • You, as an owner, are not liable for your business’ obligations
  • File tax returns and pay federal and state taxes
  • You can still use your Social Security Number when filing for taxes if you don’t have employees
  • You will need an EIN (Employer Identification Number) if you’ll be reporting taxable income and loss

How to Register a Single-Member LLC

Registering as an LLC may vary depending on the state where you’ll be working. Be sure to check the specific state requirements.

  1. Choose a business name. Check with your Secretary of State's database if the name you want is already registered.

  2. Designate a registered agent

  3. Prepare your LLC Articles of Organization

    • Part of a formal legal document used to establish an LLC at the state level. These are used to create the rights, powers, duties, liabilities, and other obligations of LLC members and the LLC as a whole. Also referred to as a "certificate of organization" or a "certificate of formation."
    • Filing requirements will vary depending on the state. Most states have templates or ready-to-use formats that you can just fill in as needed.
    • In some states, you may need to publish a notice in the newspaper showing your desire to register your LLC.

  4. File the Articles of Organization or formation documents

  5. Create an operating agreement for your LLC

  6. Obtain local and state business licenses

Make sure to file the necessary returns and filings with your state. For federal taxes, it will depend on whether your Single-Member LLC is considered a “disregarded entity” by the IRS or if you elect to be a corporation.

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