Under the "check-the-box" Regulations,a single-member LLC that fails to elect to be treated as a corporation will be taxed as a sole proprietorship.

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The "check-the-box" Regulations allow a single-member LLC to choose how it wants to be taxed. If the LLC does not make an election, it will default to being taxed as a sole proprietorship. Therefore, the statement that a single-member LLC that fails to elect to be treated as a corporation will be taxed as a sole proprietorship is true.

Under the "Check-The-Box" Regulations,a Single-Member LLC That Fails to Elect