Single-Member LLC
An LLC with only one owner, taxed by default as a disregarded entity (sole proprietorship for tax purposes).
A Single-Member LLC (SMLLC) is the most common structure for non-resident U.S. business owners. The IRS disregards the entity for tax purposes — income flows directly to the owner — but the LLC retains liability protection at state level. For non-resident-owned SMLLCs, the IRS still requires a pro-forma Form 1120 + Form 5472 even though no entity-level tax is owed. Banks treat SMLLCs identically to multi-member LLCs for KYB purposes.
Also known asSMLLC, Disregarded Entity
Related terms
- LLC — A U.S. legal-entity form combining the limited liability of a corporation with the pass-through taxation of a …
- Multi-Member LLC — An LLC with two or more owners, taxed by default as a partnership.…
- Form 1120 — The U.S. corporate income tax return; for foreign-owned single-member LLCs, a pro-forma Form 1120 must be file…
- Form 5472 — The IRS information return required from any U.S. corporation or foreign-owned U.S. disregarded entity with a …