What is the default classification for a single-member LLC?

A single-member LLC is classified as a disregarded entity by default. This means the IRS treats it as if it doesn't exist separately from its owner for tax purposes.

Can I change my entity classification after electing?

Yes, but you generally must wait 60 months (5 years) before making another election change, unless the IRS permits an earlier change.

Form 8832 Entity Classification

Form 8832 Entity Classification Election: Key Rules You Must Know (Part 3)

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Key Takeaways

Single-owner entities can elect corporation or disregarded entity status
Multi-owner entities can elect partnership or corporation status
Owner information (SSN or ITIN) must be provided on the form
The effective date can be set up to 75 days before or 12 months after filing
Late election relief is available under Rev. Proc. 2009-41 with reasonable cause

Form 8832 Key Rules: Number of Owners

Part of the Form 8832 entity classification election hinges on how many owners the entity has. If the entity has more than one owner, it can elect to be classified as either a partnership or an association taxable as a corporation. If it has only one owner, the choices are corporation or disregarded entity.

For single-owner LLCs, the default classification is disregarded entity — meaning the IRS ignores the LLC for tax purposes and treats all activity as belonging to the owner directly. This is the most common classification for foreign-owned single-member LLCs.

Providing Owner Information

When filing Form 8832, you must provide information about the entity's owner(s). For single-owner entities, you enter the owner's name and either their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Foreign owners who do not have an SSN must obtain an ITIN using Form W-7.

The term 'person' on the form does not necessarily mean an individual — it can be any entity that holds ownership or control, including corporations, partnerships, or trusts.

Effective Date and Late Election Relief

Form 8832 allows you to choose an effective date for the classification election, which can be up to 75 days before or 12 months after the filing date. If you miss the deadline, the IRS offers late election relief under Revenue Procedure 2009-41, provided you meet certain requirements including having reasonable cause for the late filing.

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