husband and wife LLC , disregarded entity MFJ?

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
Title has the question, can a LLC owned solely by husband and wife, who file their 1040 married jointly, be a disregarded entity and just put everything on 1040? Some googling says only if community property state, some says in all states. Anyone have experience?

Member Summary
Staff Summary
Thanks for visiting Join for free to remove this ad.

Is it related to a corporation? If not, then it should just be a partnership and since both partners are married, it should be able to roll into your joint taxes.

Yes it can be. Have done it for a couple of years. If you have enough profits from LLC, don't forget to setup Individual 401k. You can sock away a lot while reducing your current tax liabilities.

You didn't say if you're in a community property state. If you are, IIRC you can elect whether to treat it as a partnership or disregarded entity. But once you elect one way or the other, to change it I would imagine you would have to treat it as a conversion to the other type. I'm not sure if you have to affirmatively make an election or just file the particular return.

If you aren't in a community property state, it's a partnership.

Disclaimer: By providing links to other sites, does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to

Thanks for visiting Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017