An SMLLC, or single-member limited liability company, is an LLC that has just one member. “Member” is another name for “owner” of an LLC. The LLC’s sole owner makes all the decisions and, in turn, makes all of the profits for the business.
On the surface, an SMLLC looks a lot like a sole proprietorship because it’s a one-person business. But many entrepreneurs choose the LLC over the sole proprietorship because LLCs offer personal liability protection (they’re a separate legal entity from their owner). Similarly, an independent contractor might transition into being an LLC for the extra legitimacy and protection of a separate entity.