disregarded entity

Discussion in 'Legal Terminology' started by Mrs.T, Mar 13, 2008.

  1. Mrs.T New Member

    Mexico spanish
    Hi! I'm looking for an appropriate translation into Spanish of the legal term "disregarded entity"... Can anybody help me, please? Thankyou in advance!
  2. David Senior Member

    No me suena como buen inglés. Surtanos la oración entera, p.f.
  3. Mrs.T New Member

    Mexico spanish
    I am in the process of translating into Spanish the Operating Agreement of a LLC Domestic Utah entity. Disregarded entity refers to a company which chooses to consider itself a "Disregarded Entity" for tax purposes. If you search the Net you will easily find it (in English). So, my situation here is that I just cannot come up with the appropriate term in Spanish (Mexico) for this type of entity. Could you please help me?
  4. David Senior Member

    I suppose the mean "Ente Excluida," but I would have to see the tax code provision. But if you clarify in the transl that this is a term of art from the Utah Tax Code, Ente Excluída would probably work. It is a term they have invented for some special purpose.
  5. Mrs.T New Member

    Mexico spanish
    Yes, thank you; I guess that in this case a footnote attached to the "Entidad Excluida" term may do. Thankyou very much for your help.
    ¡Que tenga usted un excelente día!
  6. Saffron

    Saffron Member

    Oregon, USA
    English - United States
    A disregarded entity:

    In the United States, the federal Internal Revenue Service does not have a classification for limited liability companies. (This is a legal form admitted by some states, not feds.) LLCs file taxes as partnership (Form 1065) or sole proprietorship (Schedule C) depending on the number of owners (aka Members). Single-Member LLCs usually fill out the Schedule C forms under the Member's personal tax return. Thus the existence of the legal entity is disregarded. And IRS just treats it as a sole proprietorship.

    If the term/concept is barely intelligible to most Americans, I am afraid it may be quite difficult to translate. (I am not in my library to check.) You may need to add an explanatory footnote.

    Last edited by a moderator: Nov 18, 2010
  7. ximenad

    ximenad Senior Member

    ON, Canada
    Hello all :)

    I know this thread is an old one but for further queries, here is what I found in Spanish in connection with the explanation kindly provided by Saffron :)

    Desde el punto de vista fiscal, los miembros pueden solicitar que la Limited Liability Company sea tratada como una entidad fiscalmente transparente. Esto quiere decir que la sociedad es ignorada como sujeto imponible y por tanto no pagará sus propios impuestos. Los ingresos que obtenga se imputarán directamente a sus miembros. Estos deberán reportarlas en sus declaraciones de la renta personales. En el caso de que la LLC esté formada por un solo miembro, tributará como empresario individual (sole proprietorship) y si la componen varios miembros lo hará como una sociedad civil (partnership).

    Source: http://www.paraisos-fiscales.info/llc.html

    Hope you all have a great day :)

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