We currently form single-member LLCs only. That's not an arbitrary limit — it maps directly to a real difference in how the IRS treats the company once it has one owner versus more than one.
What "disregarded entity" means in practice
A single-member LLC owned by a non-resident is a disregarded entity by default. For federal reporting, the IRS treats it as if it doesn't exist as a separate taxpayer — but a foreign-owned disregarded entity still has an annual reporting duty: Form 5472, attached to a pro forma Form 1120 that serves purely as a cover sheet. Both must be mailed or faxed to the IRS; this filing can't be submitted online. One entity, one annual filing, one set of related-party transactions to report.
What changes with more than one owner
The moment an LLC has two or more members, it's no longer disregarded — by default it's taxed as a partnership. That means a full partnership return (Form 1065), a Schedule K-1 issued to every partner reporting their share of income, and materially more complexity and cost to file correctly every year. It's a different filing category, not a bigger version of the same one.
If you're planning to have partners
Say so in the application. We'll reach out personally rather than forming a structure that doesn't match what you actually need — better to sort that out before filing than after.
What we tell clients honestly
Single-member keeps the ongoing compliance simple and predictable, which is what most of the founders we work with actually want. It's not the right structure for every business — if yours needs multiple owners from day one, that's a real conversation to have with us directly, and likely with a tax adviser too.