qbteachmt
Level 15

"why would another tax preparation practitioner advise so?"

Because someone heard something that was wrong or stated wrongly, or heard it incorrectly, or (excuse me, folks...) they are a Practitioner because they are only Practicing and don't know the rules that apply.

I find the terminology helps.

A single-person LLC is a Disregarded Entity = doesn't exist outside of that Person. This is treated as if they are operating as a Sole Proprietorship and file the business info on their own 1040 using Sched C.

W3 is Payroll. It is a Summary for all W2 issued. Were there W2 issued, to anyone?

Let's review that "sole proprietor" and "single-member LLC" don't get paid through Payroll, because there is no payroll for that person.

So, do we suspect a mistake has been made, or just bad guidance given?

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