What Is a Single-Member LLC?
Starting your business solo? Learn what a single-member LLC is, how it works, and how to form one step-by-step.
Start Your Single-Member LLC for $49What Is a Single-Member LLC?
A single-member LLC is exactly what it sounds like: a limited liability company with just one owner. It's the most popular choice for solo entrepreneurs, freelancers, and small business owners.
You get all the benefits of an LLC — personal liability protection, pass-through taxation, and business credibility — but with the simplicity of running it yourself.
Why It's Popular for Freelancers and Creators
Single-member LLCs are especially popular among:
- Freelancers and consultants
- Content creators and influencers
- E-commerce sellers
- Service-based business owners
- Side hustle entrepreneurs
The reason? You get business protection without the complexity of managing multiple owners or a board of directors.
Tax Treatment of Single-Member LLCs
Single-member LLCs are treated as "disregarded entities" by the IRS, which means:
- Your business income flows directly to your personal tax return
- You file a Schedule C with your personal taxes
- No separate corporate tax return required
- You can deduct business expenses on your personal return
This makes tax time much simpler than with corporations or partnerships.
How It Compares to Sole Proprietorships
Single-Member LLC
- Personal liability protection
- More professional appearance
- Easier to open business accounts
- Same tax treatment as sole prop
Sole Proprietorship
- No personal liability protection
- Less professional appearance
- Harder to open business accounts
- Simplest tax treatment
What You Need to Form One
Forming a single-member LLC is straightforward. You'll need:
- A business name (must include "LLC" or similar)
- Articles of Organization (filed with your state)
- An EIN (Employer Identification Number)
- An operating agreement (recommended)
- A registered agent (you can be your own)
Documents You'll Want (EIN, Operating Agreement)
While not always legally required, these documents will make your business stronger:
EIN (Employer Identification Number)
Even though you're a single-member LLC, getting an EIN is highly recommended. It helps you:
- Open business bank accounts
- Apply for business credit
- Protect your Social Security Number
Operating Agreement
Even for single-member LLCs, an operating agreement is valuable because it:
- Helps maintain liability protection
- Documents your business structure
- Makes it easier to add partners later
Ready to form your single-member LLC?
Perfect for solo entrepreneurs who want protection without complexity.
Start Your Single-Member LLC for $49Fast, simple, and built just for solo founders.