TaxGuided
All glossary terms

Glossary term

Disregarded Entity

An entity treated as not separate from its owner for certain federal income tax purposes.

Related terms

1

Jurisdictions

us

Definition

In U.S. federal tax practice, a disregarded entity is commonly a single-member LLC that has not elected corporate status. Its activities are generally treated as the owner's activities for income tax purposes, although separate treatment can still apply for some employment and excise tax rules.

Examples

  • A single-member LLC owned by an individual is generally disregarded unless it files Form 8832 to elect corporate treatment.
  • A foreign-owned U.S. disregarded entity may still have Form 5472 information return obligations.

Translations

ESentidad ignorada
ZH被忽略实体

Citations

Treas. Reg. · 301.7701-3

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.