A sole member limited liability company (LLC) is owned by one person. This type of business is registered in the state it conducts business.
Financial Contributions and Withdrawals
The owner of a single-member LLC takes money out of the business as needed and will put money into the business from their own funds as necessary.
Management and Titles
The owner can choose a title suggesting their leadership role – for example, President, CEO, Managing Partner. LLCs can elect single or multiple managers. The LLC’s operating agreement grants manager(s) authority to make day-to-day decisions.
Tax Considerations
If the sole member LLC is owned by a corporation or partnership, it should be reflected on the owner’s tax return as a division. A married couple owning an LLC is still treated as a sole-member LLC by the IRS for tax purposes.