SINGLE MEMBER LLC
A Single Member LLC is a legal entity business owned by one individual. The primary advantage of an LLC is that it provides limited liability protection to the owner. This means the owner’s personal assets are generally protected from the debts and liabilities of the LLC. By default, a Single Member LLC is treated as a "disregarded entity," meaning it’s taxed as a Sole Proprietorship and does not file its own separate tax return. Instead, the profits or losses of the business are reported on the member's personal tax return on Schedule C.
A Single Member LLC may change it’s election to other tax structures such as an S Corporation if the if the owner wants to achieve certain tax advantaged goals.
Common Business Activities:
Real Estate Activities
E-Commerce
Rental Income
Freelance
Personal Trainers / Fitness Instructors
Event Planners
Consultants
Photographers
Tutors / Educators
Tech & Digital Services
Food & Retail
Real Estate
Rental income is money you earn from renting out property (like a house, condo, or apartment) and is typically reported on Schedule E of your personal tax return, where you can deduct expenses such as mortgage interest, property taxes, insurance, repairs, and depreciation; unlike business income, it’s generally not subject to self-employment tax, but it is still taxable and follows its own set of passive activity rules.