For tax purposes, only unincorporated entities can be considered to be disregarded entities.
If an entity is incorporated it is a corporate entity for tax purposes and cannot be a disregarded entity.

Question

Quizplus · Accepted Answer

This statement is true. According to the IRS, only unincorporated entities such as sole proprietors and single-member LLCs can be considered disregarded entities for tax purposes. If an entity is incorporated, it is a separate legal and tax-paying entity and cannot be treated as a disregarded entity.

For Tax Purposes, Only Unincorporated Entities Can Be Considered to Be