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Single Member Limited Liability Company (SMLLC)

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A single-member limited liability company (SMLLC) is a limited liability company (LLC) which has one member. A single-member LLC is a business entity created by a state; this entity is not recognized by the IRS for tax purposes. The SMLLC files taxes as a sole proprietorship, using Schedule C on the member's personal tax return (Form 1040), but it affords the owner liability protection of a separate business entity.

To form a single-member LLC, you must go to your state's department of state (business division) to obtain information on the process, including filing Articles of Organization (or a Certificate of Organization in a few states) and paying a filing fee.

An SMLLC is the most common type of disregarded entity, which means that the business is disregarded from its owner for tax purposes. More information on this issue is available in this article: Tax and Liability Issues for Disregarded Entities.

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