Llc Tax Classification Options

Summary

A single-member LLC in Tennessee is typically classified as a disregarded entity for tax purposes, meaning it is taxed like a sole proprietorship. The income and expenses are reported on the owners personal tax return. However, the owner can elect to have the LLC taxed as a corporation by filing the appropriate forms with the IRS. Understanding these options can help in making informed decisions about the tax treatment of your LLC.

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Since your LLC has only one member, it is generally classified as a disregarded entity for tax purposes. This means it is taxed like a sole proprietorship, and the income and expenses are reported on your personal tax return. You can also elect to have it taxed as a corporation.
Would you like more information on how to make the election to be taxed as a corporation?