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From a tax perspective, the main differences between a single-member LLC (SMLLC) and a multi-member LLC (MMLLC) are how they're classified and taxed by the IRS. 1. Tax Classification: A single-member LLC is by default considered a disregarded entity for tax purposes, meaning the LLC's activities are reported on the owner's personal tax return (Schedule C for business income, Schedule E for rental income, etc.). These LLCs do not file a separate business tax return, so their income and expenses are reported on the individual owner's tax return. A multi-member LLC is by default considered a partnership for tax purposes. MMLLCs must file a separate business tax return, Form 1065 (U.S. Return of Partnership Income), which is an informational return. The income, deductions, and credits are passed through to the individual owners, who report their respective shares on their personal tax returns (Schedule K-1 from Form 1065). 2. Self-Employment Taxes: For both single-member and multi-member LLCs, owners are subject to self-employment taxes on their share of the business's net income. However, multi-member LLC owners have the potential to reduce self-employment taxes if they're considered limited partners and only receive a share of profits, not guaranteed payments for services performed. 3. Electing S-Corp or C-Corp Status: Both single-member and multi-member LLCs have the option to elect S-Corp or C-Corp taxation by filing Form 2553 (S-Corp) or Form 8832 (C-Corp) with the IRS. Electing a different tax classification can offer tax benefits, such as reducing self-employment taxes with an S-Corp election, but it also comes with additional administrative requirements. It's essential to also consider state-specific rules, legal liability protection, and management structures when comparing single-member and multi-member LLCs. Ultimately, the best choice will depend on the specific needs and goals of the business and its owners.