What is a single-member LLC?

A single-member LLC is a limited liability company with one owner (member). It provides the same liability protection as a multi-member LLC but is taxed as a 'disregarded entity' by default — meaning all income and expenses are reported on Schedule C of the owner's personal tax return, identical to a sole proprietorship but with liability protection.

Single-member LLCs are the most popular business structure for solo founders, freelancers, and independent contractors because they combine the simplicity of sole proprietorship taxation with the asset protection of a corporation. Key considerations: you must maintain separation between personal and business finances (separate bank account, no commingling funds), keep an operating agreement on file, and avoid treating the LLC as an alter ego — otherwise a court could 'pierce the corporate veil' and hold you personally liable. Single-member LLCs can elect S-Corp taxation once profitable enough to benefit from the self-employment tax savings.