What is Single-Member LLC?
Definition A single-member LLC is a limited liability company with one owner that provides legal liability protection under state law. By default the IRS treats it as a disregarded entity, meaning its activity is reported on the owner's return (usually Schedule C) exactly as a sole proprietorship. The owner can instead elect to have it taxed as an S corporation or C corporation if that is more advantageous.
It gives small-business clients liability protection without changing how they file, and the option to elect corporate taxation later makes it a flexible planning tool for firms.