Is a single member LLC a sole proprietorship or an individual (Paypal Business)

[davsea17]

I'm not sure which option to select.

As I've read it can be either.

And they used to put Individual/SoleProprietor as the option. Now it's separate.

So not sure which one to select (no I haven't made any election to S-Corp etc) Just a standard basic Single Member LLC Thanks!

[xmasbaby0]

A single member LLC or sole proprietorship is a disregarded entity.  You just enter your self-employment income and make sure to prepare a schedule C for your business expenses.  You will pay self-employment tax for Social Security and Medicare, as well as ordinary income tax.   You need online Self-Employed or any version of the CD/download in order to prepare a Schedule C.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

[VolvoGirl]

Where is it asking you to pick one?  On Turbo Tax?  They should be the same.  It shouldn't make a difference which one you pick.  Maybe Turbo Tax will ask different questions based on which you pick.  But that shouldn't affect your tax return.   

[Mike9241]

A single-member LLC is disregarded for tax purposes. so it would seem it doesn't matter whether you select individual or sole proprietor

[LiverSac]

A sole proprietorship is a business owned by a single individual person.  The business name (if any) is a substitute for the person's name (and is sometimes called a "fictitious name".  All liabilities, including judgements, of the sole proprietorship business are also liabilities of the person.  Corporations (including LLCs) are used, in part, to shield owners, including a sole owner,  from being personally liable for for many types of liabilities of the business.  

[davsea17]

I'm leaning towards selecting individual. What is categorized under individual? 

I'm confused as to what the difference is? Thanks!