Single-Member LLC

A single-member LLC (SMLLC) is a limited liability company with one owner (member) that provides personal asset protection while being treated as a disregarded entity for federal tax purposes by default — meaning the LLC's income and expenses are reported directly on the owner's individual tax return (Schedule C of Form 1040) without requiring a separate business tax return. This combination of liability protection and tax simplicity makes the SMLLC the most popular business structure in the United States, with over 4 million single-member LLCs formed annually. Formation requires filing articles of organization with the state's Secretary of State office, paying filing fees ranging from $40 (Kentucky) to $500 (Massachusetts), and designating a registered agent. While the IRS does not require a separate EIN for a single-member LLC with no employees, obtaining an EIN is essential for opening a business bank account, establishing trade credit, and establishing the entity's independent identity for liability separation. The SMLLC's disregarded entity status means all net income is subject to self-employment tax at 15.3% on the first $168,600 (2026) plus 2.9% Medicare on amounts above — creating a strong incentive for SMLLCs earning above $50,000–$80,000 to elect S-Corp taxation via Form 2553. Key compliance requirements include maintaining separation between personal and business finances (commingling funds can pierce the corporate veil), filing annual reports in most states ($0–$300 annually), and adhering to operating agreement provisions even as a sole member. doola provides end-to-end SMLLC formation, EIN acquisition, registered agent services, business bank account setup, and ongoing compliance management including annual filings and tax preparation.