Disregarded Entity Definition

Used by the IRS to describe a LLC which, for tax purposes, is disregarded as its own entity and therefore all income and expenses are shown on the member?s (owner?s) personal tax return (on Schedule C). Disregarded Entity or Entity Disregarded is the default for a single-member LLC. Note: Per IRS rules, a LLC owned by a husband and wife can be deemed a single member LLC and therefore Entity Disregarded OR as a Partnership.