Can a single member LLC be a shareholder of an S-Corp?
The IRS issued several Private Letter Rulings (200816002, 200816003, and 200816004) to the effect that an S corporation will not lose its “S” status if it has a shareholder that is a single-member LLC, provided that the LLC is a “disregarded entity” for tax purposes (meaning that it has not elected corporate tax treatment) and is owned by an individual.