This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- A Single-Member LLC (SMLLC) is a disregarded entity for federal income tax purposes by default.

- An SMLLC owned by an individual reports its business activities on the owner's personal tax return, typically using Schedule C.

- When a corporation owns an SMLLC, the LLC's activities are treated as a branch or division on the corporation's tax return.

- An SMLLC is regarded as a separate entity for employment tax purposes and must have its own EIN to file payroll tax returns like Form 941.

- The EA exam frequently tests the exception: an SMLLC is disregarded for income tax but treated as a separate entity for employment and certain excise taxes.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep