Single-Member LLC
Single-member LLCs are limited liability companies with only one owner. This differs from a traditional LLC, which typically has several owners who pool resources and share assets and liabilities in the business.
What is a single-member LLC?
The name “single-member LLC” is derived from the fact that the owners of an LLC are typically called “members.” When an LLC has only one owner, that owner is the sole member of the company.
Single-member LLCs are often formed for the same reasons a typical LLC is formed—the liability protection offered by the business structure over a sole proprietorship or partnership. Just like a multiple-member LLC, there is also a great deal of flexibility in how a business entity operates and pays its taxes when it is registered as an LLC.
FAQs
Can a married couple be a single-member LLC?
This depends largely on how the LLC intends to file for federal tax purposes and where it is located. Married couples operating an LLC in states with community property laws can often register their business as a single-member LLC, despite technically having two people who can act as members.
How much does it cost to start a single-member LLC?
The cost to start a business can vary widely depending on how it's organized, where it’s based, and what industry it will operate within. LegalZoom can help you get your LLC started, no matter who is involved or where you are located.
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