A disregarded entity is an entity that holds legal title to property, but is not required to file an income tax return. There are four types of disregarded entities: revocable living trusts, Illinois type land trusts, single member limited liability companies and Delaware Statutory Trusts.he last thing I want to point out is that it is possible, and common, to chain together a series of disregarded entities. A building that is owned by a single member LLC, with the Sue Jones Revocable Living Trust as the sole member, is for IRS and 1031 exchange purposes, owned by Sue Jones herself.