Taxation of a Single Member LLC
by Precept on Oct.14, 2009, under Taxation
If you only have one owner in a Limited Liability Company, how is it taxed?
A Limited Liability Company that has only one owner is taxed as a disregarded entity for Federal Tax purposes.
What does this mean? It means that a tax return is not filed at the federal level for the entity itself. Instead, the income and expense items of the entity are included on the owner’s individual income tax return. These items will typically be reported on Schedule C and/or Schedule E, and depend on the type of activity as to which form is used.
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