Disregarded Entity

Learn about Disregarded Entity and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Learn more about workstream

What is a disregarded entity? 

A disregarded entity refers to a business that is separate from its owner but not when it comes to federal income tax purposes. The business taxes are paid as part of the owner’s personal income tax return. 

Disregarded Entity:

What kind of business can be considered a disregarded entity?

Not all businesses can be deemed a disregarded entity. The only type of business that can be considered as a disregarded entity is a Single-Member Limited Liability Company (SMLLC). In an SMLLC, the term “member” refers to the company’s owner. Meaning, a Single-Member LLC has only one member or is owned by one person. 

However, this is only for as long as the Single-Member LLC does not elect to be treated as a corporation or S corporation. If it does choose to become a corporation, then the tax status will change. It will no longer be treated as a disregarded entity. 

Is a disregarded entity required to file tax returns? 

No, the federal taxes of the disregarded entity are not required to be paid separately. All the activities and taxes should be filed as part of the owner’s personal tax return. 

However, keep in mind that the status as a disregarded entity does not apply to employment taxes and certain excise taxes. In this case, a single-member LLC is still considered a separate entity. 

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.

1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"It has cut my screening process significantly, allowing me to multi-task other duties and responsibilities instead of countless phone calls."

Air Ventures LLC

Currently hiring on Workstream for:

Barista at Barista Parlor

"Great customer service, wonderful automation."

Envoy America

"It works =)"

King Courier

Currently hiring on Workstream for:

Customer Service Representative

Delivery Driver