What Is A Disregarded Entity And How Does It Affect Taxes? I Came Across This Term While Reading About Business Structures And Need A Simple Explanation. Why Do Businesses Choose This Structure? Also, Are There Any Advantages Or Disadvantages To Using This Entity Type?
It basically means the IRS ignores the business as a separate entity for tax purposes, so all the income just flows through to your personal return, most single-member LLCs are set up this way by default.
