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So, I registered a LLC but I am the only member in this LLC. If I do business under this LLC, when I file tax, I think I should NOT choose "Individual/sole proprietor or single-member LLC" category, right?

Instead, I think I should choose "Limited liability company - Disregarded Entity". Does this make sense? Is this the correct category?

Thanks a million!

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    What a weird set of categories. Did the IRS issue this, or is this some stupid third party tax software/service? . A single member LLC is the same thing as an LLC with one member. Presuming the LLC does not elect S-corp tax treatment -- a sole proprietor, SMLLC and ”disregarded entity” are again the same thing as far as tax treatment!
    – Harper - Reinstate Monica
    Aug 31, 2018 at 23:55
  • @Harper Thank you for the response. I think single-member LLC in the first case is the individual doing business without registering the LLC but will be treated as a LLC with single member in terms of filing tax. Not sure If that's the reason...
    – zs2020
    Sep 1, 2018 at 10:54
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    Nah, if he hasn't registered the LLC then he's a sole proprietor. Is this an IRS document? Can you link it?
    – Harper - Reinstate Monica
    Sep 1, 2018 at 15:23
  • If you haven't registered, it's not an LLC.
    – Kevin
    Sep 1, 2018 at 20:10

1 Answer 1

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I suspect that:

  • "Individual/sole proprietor or single-member LLC" -- Applies to a single-member LLC with pass-through taxation (i.e., you haven't elected to be taxed as a corporation)
  • "Limited liability company - Disregarded Entity" -- Applies to a multi-member LLC that is taxed as a partnership (this is also pass-through taxation but is more complicated since the partnership needs to file its own tax return)

You should choose the first one.

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