Husband and Wife LLC

[Martha Daisley]

hello all

My husband and I are closing on a property this week. We want to close in an LLC we just created. My question is, when i go to create the EIN number, the IRS wants to automatically make us a partnership. My accountant says dont do that as we will have to fill out some 1065 form instead of being able to put the rental income under schedule E. He says to not get an EIN and file the taxes under our personal socials. But i thought the point of the LLC was to keep our personal separate from business in order to avoid liability. Wouldnt filing the LLCs income under our personal socials make the LLC pointless? How can we get an EIN for it without being a partnership?

Thanks!

Martha

[Lance Lvovsky]

@Martha Daisley A husband and wife LLC in Florida (or any other non-community property state) DOES require filing a separate tax return, Form 1065. Don't listen to your accountant as he is wrong. Since Florida is a non community property state, a husband and wife LLC will need to file a separate tax return. You can't report the LLC income on Schedule E.

In a community property state, a husband and wife LLC can report on Schedule E.

If you want an EIN without being classified as a "partnership" for tax purposes, then you will need a SMLLC (single member LLC). A SMLLC is disregarded for tax purposes, and you will be able to report your rental activity on Schedule E.

Hope this helps.