Disregarded entities are business entities that are not recognized as separate from their owners for tax purposes. This means that the business's income and expenses are reported on the owner's personal tax return. The new disregarded entity function allows for the proper tracking and reporting of this information for US LLC accounts.

The disregarded entity function is a feature that has been added to US LLC accounts. This feature allows for the tracking of disregarded entity data, including the partner's SSN, full name, and whether the entity is disregarded or unknown. This data can be collected during account creation or when editing an existing account.

There are two ways to update the disregarded entity classification: by creating a new account or by editing an existing account. Let's take a closer look at each of these options.

If an existing investor account should be updated with a disregarded entity within your sponsor portal, the fields will appear for US LLCs when editing accounts. Simply follow the same steps as above to update the disregarded entity information for the account:

New accounts will also allow either the sponsor or investor to provide the information. For sponsors, it is a simple process of adding another editable field when editing an account. This can be done by following these steps:

In conclusion, the new disregarded entity function is a valuable addition to US LLC accounts. It allows for the proper tracking and reporting of disregarded entity data, ensuring compliance with tax regulations. Whether creating a new account or updating an existing one, the process is simple and straightforward. If you have any further questions or need assistance, please don't hesitate to reach out to our customer support team.