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Prove It!: Why LLCs Fail Entrepreneurs and What to Build Instead
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What “Separate” Actually Means
You formed an LLC because you were told it would protect you and separate you from your business. You filed with the state, got an EIN, and opened a business bank account.
An LLC can provide important liability protection under state law. That is not the same as a business that operates independently of its owner. For federal income-tax purposes, a single-member LLC is generally treated by default as an entity disregarded as separate from its owner.
In Prove It!,...
You formed an LLC because you were told it would protect you and separate you from your business. You filed with the state, got an EIN, and opened a business bank account.
An LLC can provide important liability protection under state law. That is not the same as a business that operates independently of its owner. For federal income-tax purposes, a single-member LLC is generally treated by default as an entity disregarded as separate from its owner.
In Prove It!,...