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What is a "disregarded entity"?


Entity Classification Election Filing Service


Most commonly, Disregarded Entity is the IRS's term for LLCs that have only one owner, and that elect to be taxed like a Sole Proprietorship.

But another more technical way to define it is as a registered business entity that is separate from its individual owner for liability purposes, and that is federally taxed through the individual owner's personal tax return, on Schedule C.



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