LLC & Spouses

[barosser]

I am sure that I have seen this but can't locate it. Spouses in community property state operate a LLC can this be reported on Sch C (or F) or does it have to go on a 1065.

Thanks in advance

[TAXBILLY]

Your answer is in the Schedule C instructions.

taxbilly

[mcb39]

I am sure that I have seen this but can't locate it. Spouses in community property state operate a LLC can this be reported on Sch C (or F) or does it have to go on a 1065.

Thanks in advance

I put them on 2 Schedule Cs with the income and expenses split. This way both spouses get the advantage of SE Tax which goes to SS; and here in Wisconsin they benefit by the Married Couple Credit as they both have income.

[jainen]

>>can this be reported on Sch C (or F) or does it have to go on a 1065<<

It can be reported on one Schedule C, two Schedules C, a 1065, an 1120, or an 1120-S, and even certain other possibilities, depending on how the actual company is operated and the decisions of the owners. IN ADDITION, Texas (and other states) require the LLC itself to file a franchise tax return.

[mcb39]

Wisconsin is a Community Property State but does not have that requirement.........YET! Yes, any of those are possible depending on the circumstances....and what the market can bear. I try to keep things as simple and beneficial as possible for my clients. We are in a highly economically distressed area and I have very, very few clients with above average incomes. I would add that this economic distress did not just develop this past year, but has been progressing for at least the past seven or eight years. I only have a handful of clients who are not struggling to some extent.