A single member LLC is a limited liability company that has only one owner, also known as a member. It is a business entity that offers limited liability protection and pass-through taxation, meaning that the profits and losses of the business are reported on the owners personal tax return. The term "single-member" is used to recognize that the LLC has one owner, as opposed to an LLC in which there is more than one owner. Single-member LLCs have all the same advantages and disadvantages of a multi-member LLC, including personal limited liability protection for the owners business debts. However, single-member LLCs must be careful to avoid commingling business and personal assets, which could lead to the loss of limited liability protection. Single-member LLCs are often compared to sole proprietorships, but they offer more personal asset protection and the option to be taxed differently.