is a single member llc automatically a disregarded entity 
yes a single member llc is automatically a disregarded entity it can request to be taxed differently 11can a disregarded entity have employees yes a disregarded entity can have employees the disregarded entity status is recognized only for the purposes of federal income taxes it doesn t affect employment and in fact a disregarded entity with workers might have to pay employment taxes however the irs and courts have ruled that a single member llc one of the most common types of disregarded entities cannot classify an owner as both an employee and a partner 12the bottom lineflow through entities can save you from double taxation on a company s profits sole proprietorships partnerships llcs and s corps can take advantage of pass through taxation however it s possible for owners or investors of a pass through entity to be taxed on income they didn t actually receive for instance if the income was put back into the business also some flow through entities such as sole proprietors are subject to self employment tax too therefore it s important to understand the tax implications of your particular situation 