Single-member LLC guide
A single-member LLC is a limited liability company with one owner. Learn how a one-member LLC is taxed, what records it needs, when a non-U.S. owner files Form 5472 and how to form yours with FormLLC.
A practical starting point
A single-member limited liability company, or SMLLC, is an LLC owned by one person or one entity. It is formed under state law like any other LLC, so the owner can keep business assets and debts separate from personal ones when the company is run and documented properly. For federal tax purposes, the IRS treats a one-member LLC as a “disregarded entity” by default, unless the owner elects to have it taxed as a corporation. Owners who live outside the United States can form a single-member LLC too, but they take on extra reporting duties.
Consider the fit
Forming a one-person LLC is the easy part. These three areas decide what the company has to do every year.
By default the IRS disregards a one-member LLC, so its income is reported on the owner’s return. The owner can file Form 8832 or Form 2553 to have the LLC taxed as a corporation instead. Get tax advice before you elect.
Explore tax filing supportMost states do not require a one-member LLC to have an operating agreement, but it records who owns and runs the company and supports the separation between you and the business. Banks often ask for one.
Review operating agreementsA U.S. single-member LLC owned by a non-U.S. person is treated as a corporation for Form 5472 purposes. It generally files Form 5472 with a pro forma Form 1120 each year and needs an EIN, even with no U.S. income.
See Form 5472 supportNext steps
Pick the state where you will form the LLC and check that your preferred name is available there.
Every LLC needs a registered agent with a physical address in its state of formation to receive official notices.
Submit the state formation document, listing the LLC name, registered agent and other details the state requires.
Apply for an Employer Identification Number from the IRS, sign an operating agreement that names you as the sole member, then track annual reports and Form 5472 if it applies.
Prepare the relevant details
6 details to include
Confirm the scope
Single-member LLC tax treatment and reporting come from IRS rules, and formation rules come from the state where you file. Review the official guidance below and confirm your facts with a tax adviser before choosing an election. Official sources checked 30 October 2026.
Questions answered
Yes. Every U.S. state allows a one-person LLC. The single member can be an individual or a company, and can live inside or outside the United States, subject to state and industry rules.
By default, the IRS treats a single-member LLC as a disregarded entity, so its income and expenses are reported by the owner. The LLC can instead elect to be taxed as a corporation by filing Form 8832, or as an S corporation by filing Form 2553 if it is eligible.
No. A single-member LLC is an LLC under state law, not a corporation. It can choose to be taxed as a corporation for federal purposes, but that election does not change its legal structure. Compare both structures in our LLC vs corporation guide.
Most states do not require one, but a single-member LLC operating agreement is still useful. It confirms ownership and management, supports the separation between you and the company, and is often requested when opening a business bank account.
A disregarded single-member LLC with no employees may not need its own EIN for income tax, but many owners get one for banking and payroll. A foreign-owned single-member LLC needs an EIN because it must file Form 5472.
A U.S. single-member LLC wholly owned by a non-U.S. person generally files Form 5472 attached to a pro forma Form 1120 each year to report transactions with its owner. The IRS can charge a $25,000 penalty for failing to file a required Form 5472.
Yes. Adding a member changes the LLC to a multi-member LLC, which is taxed as a partnership by default. Update the operating agreement and review the tax effect before the change.
Continue with FormLLC
Get state filing, registered agent coordination and EIN support for your one-person LLC. LLC plans start at $399 for a Wyoming LLC, state filing fee included.