A single-member LLC is taxed as a sole proprietorship by default, while a multi-member LLC is taxed as a partnership unless you elect otherwise. Legal entity and tax structure are separate choices.
What is the difference between a legal business entity and a tax structure? Then you have partnerships. You can legally set up a partnership entity, and that partnership can be filed like a partnership. Most people don't set up general partnerships anymore. What they normally set up is an LLC. That is a legal entity. The LLC, based on how many owners it has, can have a tax status. Like one of these many things. So an LLC, legal entity tax structure, if it's owned by one person and no separate tax elections have been made on it, that's a single-member LLC, and that would be taxed as a sole proprietor. If I have more than one member, now I have a multi-member LLC, and if I don't make any sort of separate tax election on it, it'll default to have a tax status as a partnership tax return.
