A single-member LLC is treated as a disregarded entity for tax purposes. This means it is viewed as an extension of the owner. The owner reports LLC income and expenses on their personal tax return. For an individual owner, this would be Schedule C filed with their Form 1040.
A limited liability company (LLC) offers liability protection without the complexities of a corporation. LLC owners are called members. Most states allow single-member LLCs with just one owner. Each state has different regulations for LLCs.
The IRS allows LLCs to choose a tax classification. Common options are:
- Sole proprietorship
- Partnership
- S corporation
- C corporation
The classification affects how income and expenses are reported and taxed.
A series LLC divides an umbrella LLC into separate LLC series. Each series can have distinct membership and business purposes. This segregates assets and liabilities between series. A construction firm, for example, could isolate risk between commercial, industrial, and municipal projects.
Filing Fees for Series LLCs
In Texas, the fee for a series LLC is:
- Filing fee: $300
With a series structure, additional series do not incur extra fees. Without it, each LLC would require a separate filing fee.