A disregarded entity, or an entity that is not separately regarded from its owner for tax purposes, has many popular uses. A disregarded entity may be used to operate a business, owned and operated by a single-person, or may be used to invest in a partnership or S corporation. Whatever the reason an owner chooses to organize and operate a disregarded entity, income earned by a disregarded entity is personally reportable by the owner of the disregarded entity for federal tax purposes.
There are two types of disregarded entities that will be explored in this course:
1) The single-member limited liability company; and
2) The grantor trust.
The tax implications involved with owning both of these entity types will be explored in depth.
