1-person LLC (Limited Liability Company) or sole proprietorship?

From: Peter Parker <spiderman_at_home.com>
Date: Tue, 8 Aug 2006 07:43:56 -0400

The IRS said that 1-person LLC is treated as sole proprietorship. I understand that LLC protects owner(s) against unlimited liability/loss. However, for tax purpose, how does 1-person LLC and sole proprietorship compare? If the 1-person LLC has another person working per hour (or as needed only or part-time only) instead of full-time, is it considered more-than-1-person LLC? Thank you. Received on Tue Aug 08 2006 - 04:43:55 PDT