When forming a US LLC you must decide: one owner or several? This choice affects your taxes, paperwork and how the IRS treats your company.
Single-member LLC
- One owner; simplest structure.
- Treated as a disregarded entity by default (income passes to you).
- Foreign-owned single-member LLCs must file Form 5472 + pro-forma 1120.
Multi-member LLC
- Two or more owners.
- Taxed as a partnership by default (files Form 1065, issues K-1s).
- Needs an operating agreement defining ownership splits.
Key differences
- Taxes: disregarded entity vs partnership filing.
- Control: full control vs shared decisions.
- Paperwork: single-member is lighter.
Which is right for you?
Solo founders almost always start single-member. Choose multi-member when you genuinely have partners. Either way, you can elect corporate taxation later — see LLC vs C-Corporation.
FAQ
Can a non-resident be the only member?
Yes — 100% foreign ownership is allowed.
Can I add members later?
Yes, by amending your operating agreement and filings.
Start with 3Companion
3Companion forms US & UK companies for non-residents in 150+ countries — LLC, C-Corp, EIN/ITIN, banking and compliance, 100% remote. Start your application or message us on WhatsApp for a free consultation.