A single-member domestic LLC is considered to be a ‘Disregarded Entity’ for tax purposes even though it is a recognized legal entity. Therefore, in case the seller is a single-member LLC, the company’s status will depend on the identity of its only member/owner. If the sole member of the LLC is a ‘Foreign Person’, the FIRPTA rules on withholding will apply under the same conditions as if the foreign sole member was the seller. On the other hand, a multi-member LLC is not considered to be a ‘Disregarded Entity’ and accordingly, it is taxed under different conditions as compared to single-member limited liability companies. Therefore, the FIRPTA withholding rules do not pertain to multi-member domestic LLCs.