TruckDriver 0 Posted October 20, 2009 Has anybody done this? Are there and disadvantages? The IRS considers it as a disregarded entity and their definition is, "A disregarded entity is a single member Limited Liability Company (LLC) that reports its income as a sole proprietorship." So, from what I get. I'm seen as a sole proprietorship with the benefits of a LLC... Am I right? Share this post Link to post Share on other sites
mikerob2334 2 Posted October 20, 2009 yes, it combines the ease of a sole proprietorship with some of the limited liability benefits of a corporation. i have both a single member llc and a 3 member llc (which is treated like a partnership for tax purposes). it's a good way to separate your business from personal and cover yourself Share this post Link to post Share on other sites
TruckDriver 0 Posted October 20, 2009 Yeah, that's what I wanted to do. If for some reason i get sued, then they can only take what's in the business and nothing else. Share this post Link to post Share on other sites
mikerob2334 2 Posted October 20, 2009 that's correct (to a point). you have to be carefull to keep personal and business separate, and anything you sign or do needs to be as a manager of the llc. for instance you sign a contract your name, Manager Share this post Link to post Share on other sites
TruckDriver 0 Posted October 21, 2009 Ah... I didn't know that, but I will be sure to do it! Any other tips? I sure do appreciate it! Share this post Link to post Share on other sites
Dakotagrafx 7,297 Posted October 21, 2009 great info Share this post Link to post Share on other sites
