Thank you for the explanation sir. I'm online at the moment registering for an EIN for my new business. When I saw the message that my sole proprietorship LLC would be given the status of disregarded entity, the first thing I thought is "how rude!"😑 I don't want to be disregarded! Now I understand that there is no difference in the liability protection, only the tax filing status as far as being a disregarded entity. Thank you.
Hello, My SMLLC Fon non us resident is by default a sole proprietor by IRS, which means there is no protection. I wanted to be taxed as disregarded entity separated from the owner to get that protection. Should I fill 8832 myself or I need someone to do it for me?
So I have an LLC and an EIN… I opened a business bank account with my EIN… can I still deem my business as a disregarded entity? And how does that work during tax time?
It would not be a disregarded entity, because the IRS considers it its own taxing entity, because it has an EIN. How did you say it was going to be taxed? Partnership? Subchapter S entity-like an S Corporation?
What is the impact on getting business credit if setting up an LLC taxed as a disregarded entity? I’m assuming that because personal SSN is used, then banks will look at personal credit.
Business credit for a closely held company is a total myth unless the business has many millions of dollars in assets. The credit of the owner (owners) will always be the key and their credit and personal guarantee will always be required. (Yes, I know someone out there can prove what I said was wrong, but for every one of those there are ten thousand others.) Business credit in a disregarded LLC is a total 100% joke or myth.
Thank you for your video. I have a single member LLC and will be taxed as an S-Corp. Is my LLC a disregarded entity? I cannot wrap my brain around it. It's a bit confusing lol. I did watch the video. I'm currently filling out the request for more information form from NYS. It says "check here if the LLC is a single member LLC that is disregarded as an entity separate from its owners for Federal and NYS tax purposes."
You get to choose how your LLC will be taxed. If you choose to have it taxed as a sole proprietorship and use your Social Security number then the IRS wouldn’t even know you had an LLC. it would be disregarded by the IRS. they think it is just you. You choose to have your single member LLC taxed under Subchapter S or the IRS Code. That’s fine. But the IRS now knows there is something there, either a corporation or LLC, and so it isn’t disregarded by the IRS. you have to get an EIN for the LLC taxed under Subchapter S.
Yes a married couple filing a joint 1040 IRS return can set up their LLC as a sole proprietorship (disregarded entity) or as a partnership. If I didn’t make that point, I missed it. sorry. Thanks for pointing it out.
@@LordBlackNephew yes bro, you can. If you scroll through the comments he answers this question. You will open a bank account under your OWN Social Security Number
The myth that a small business, of any taxation structure, can build credit and get loans is pretty much just a myth. You as the small business owner will 99.9% of the time sign personally on the loan, and it will be your credit that gets the loan.
Thank you for the explanation sir. I'm online at the moment registering for an EIN for my new business. When I saw the message that my sole proprietorship LLC would be given the status of disregarded entity, the first thing I thought is "how rude!"😑 I don't want to be disregarded! Now I understand that there is no difference in the liability protection, only the tax filing status as far as being a disregarded entity. Thank you.
😂
This is such a TREMENDOUS blessing to my team and I! Thank you, sir, for not hoardering your knowledge.
Thanks for the information. I'm a self-published author & will set up LLC with Disregarded Entity. I think this suits my needs...Schedule C
Hello,
My SMLLC Fon non us resident is by default a sole proprietor by IRS, which means there is no protection.
I wanted to be taxed as disregarded entity separated from the owner to get that protection.
Should I fill 8832 myself or I need someone to do it for me?
So I have an LLC and an EIN… I opened a business bank account with my EIN… can I still deem my business as a disregarded entity? And how does that work during tax time?
It would not be a disregarded entity, because the IRS considers it its own taxing entity, because it has an EIN. How did you say it was going to be taxed? Partnership? Subchapter S entity-like an S Corporation?
What's the quickest way to complete, send and get results for 8832 form?
What is the impact on getting business credit if setting up an LLC taxed as a disregarded entity? I’m assuming that because personal SSN is used, then banks will look at personal credit.
Business credit for a closely held company is a total myth unless the business has many millions of dollars in assets. The credit of the owner (owners) will always be the key and their credit and personal guarantee will always be required. (Yes, I know someone out there can prove what I said was wrong, but for every one of those there are ten thousand others.) Business credit in a disregarded LLC is a total 100% joke or myth.
Spoke like a true OG wizard lol....thank you
Thank you for your video. I have a single member LLC and will be taxed as an S-Corp. Is my LLC a disregarded entity? I cannot wrap my brain around it. It's a bit confusing lol. I did watch the video. I'm currently filling out the request for more information form from NYS. It says "check here if the LLC is a single member LLC that is disregarded as an entity separate from its owners for Federal and NYS tax purposes."
You get to choose how your LLC will be taxed. If you choose to have it taxed as a sole proprietorship and use your Social Security number then the IRS wouldn’t even know you had an LLC. it would be disregarded by the IRS. they think it is just you. You choose to have your single member LLC taxed under Subchapter S or the IRS Code. That’s fine. But the IRS now knows there is something there, either a corporation or LLC, and so it isn’t disregarded by the IRS. you have to get an EIN for the LLC taxed under Subchapter S.
@@Legaleescorp Thanks so much for your response.
What is the Chapter - Status of Disregarded entity. in Form W-8BEN-E Can we use Active NFFE???
It sounds like you are dealing with paying foreign people, and that is beyond my pay grade. You will need a large international accounting firm.
Wh😢at?!? Above your pay grade? That's exciting and disturbing.
Love how you explain this.
Feel free to answer the question, we'll be here 😂😂
Thanks for helping.
Could a single-member LLC with its own EIN, be considered a Disregarded entity?
Generally, if it has an EIN, it needs to file its own tax return, so it would not be disregarded, because the IRS looks at it as a separate entity.
Thanks for mopping that up
Can't a married couple filing jointly set an LLC Tax Provision as "Disregarded" too, and not a Partnership as stated here?
Yes a married couple filing a joint 1040 IRS return can set up their LLC as a sole proprietorship (disregarded entity) or as a partnership. If I didn’t make that point, I missed it. sorry. Thanks for pointing it out.
Lee, can i open a bank account with a disregarded LLC?
@@LordBlackNephew yes bro, you can. If you scroll through the comments he answers this question. You will open a bank account under your OWN Social Security Number
Can a disregarded LLC build credit and take out loans?
The myth that a small business, of any taxation structure, can build credit and get loans is pretty much just a myth. You as the small business owner will 99.9% of the time sign personally on the loan, and it will be your credit that gets the loan.
Hey Lee, can I open a bank account with a disregarded LLC?
Absolutely, you will need a bank account. It will be in the name of the LLC with your social security number.
@@Legaleescorp What if my S Corp owns 100% of my LLC. Would I use the S Corp EIN for the LLC bank account?
Thank you!
Thanks!