§00Structure · Glossary
Disregarded Entity
Also called DE · SMLLC
A single-member entity ignored for federal tax purposes — its owner reports activity directly.
In full
A disregarded entity is a business structure (typically a single-member LLC) ignored as separate from its owner for federal income tax purposes. The owner reports the entity's activity on their own return. For foreign owners of U.S. disregarded entities, this creates the Form 5472 / Pro-Forma 1120 dual filing requirement regardless of activity level.
Governed by: Entity classification rules.
This definition is general information about how the term is used in U.S. cross-border tax. It is not advice, and how it applies depends on your own facts and on the treaty, if any, in force with your country.
Related terms
- Form 5472Information return for foreign-owned U.S. corporations and disregarded entities reporting reportable transactions with related parties.
- Pro-Forma 1120A skeleton corporate income tax return filed by foreign-owned disregarded entities solely to attach Form 5472.
- Wyoming LLCA limited liability company formed under the Wyoming LLC Act — used for low state-level disclosure and low maintenance.
Where this comes up
- The Year-End Checklist for Non-U.S. Residents: 12 Things to Settle Before 31 DecemberFilings & Penalties
- Christmas in Florida: How Holiday Visits Add Up on the Day CountU.S. Tax Residency
- Holiday Gifts and U.S. Gift Tax for Non-ResidentsU.S. Property
- Why a Treaty Can Exist and Still Not Apply to YouTreaty Optimization