The phrase "a disregarded entity" is correct and usable in written English.
It can be used in contexts related to business or legal terminology, particularly when discussing entities that are not recognized for tax purposes or are overlooked in certain situations.
Example: "In the eyes of the IRS, the LLC is treated as a disregarded entity, meaning its income is reported on the owner's personal tax return."
Alternatives: "an overlooked entity" or "a non-recognized entity".
The rules under § 1.1471-3(d)(4) and (e)(3) apply to determine the circumstances under which a withholding agent may treat a payment made to a disregarded entity owned by an FFI as made to a payee that is a participating FFI or registered deemed-compliant FFI, and not as a payment made to a payee that is a nonparticipating FFI.
Whereas, a special purpose LLC wholly owned by a 401(k) plan would be treated as a disregarded entity for tax purposes.
For federal tax purposes, however, the limited liability company is treated as what's called a disregarded entity, meaning the tax liability flows through to the members as if they were one and the same.
First, for individuals, estates and trusts that own or engage in a trade or business (either directly or indirectly through a disregarded entity), the determination of whether income is derived in a trade or business is made at the individual, estate or trust level.
At the top of its organizational structure is a disregarded entity called POFN LLC.
Unless your LLC is has only one member and you intend to file taxes as a disregarded entity (you will include your business income and expenses on your personal income taxes), you will need to obtain an EIN.
A withholding agent that makes a payment to a limited branch (including an entity disregarded as a separate entity from its owner if such owner is an FFI and the disregarded entity is unable to comply with the terms of an FFI agreement with respect to accounts that it maintains) will be required to treat the payment as being made to a nonparticipating FFI.
However, the Greenhunter Court went on to state that while disregarded entity status is a factor, it is not much of a factor -- in fact, hardly a factor worth considering.
If you're organized as an SMLLC that is disregarded for federal income tax purposes, enter your SSN (do not enter the disregarded entity's EIN).
Since attempting to define or categorize social entrepreneurship entities can be exhausting, (for profit, non-profit, co-operative, mutual organization, disregarded entity, social business, benefit corporation, community interest company), it is easier to illustrate the power of these organizations by sharing the success story of a social enterprise.
Like most Koch-connected groups, Public Notice is organized as a confusing string of limited liability corporations, disregarded entities and nonprofits, obscuring the undisclosed "dark money" it accepts.
