LLC Tax Advice for Married Couples

4 Replies

Hi BP. I had a question regarding an LLC. We just opened up an LLC as husband and wife. I was wondering if this can be a disregarded entity since we are married and file jointly. All property in this LLC are community properties. If you know anyone or if you can help guide me in the right direction, please message me. Best, Junior

@Junior Picanco , 

If a husband and wife wholly own a limited liability company (LLC) ( if you have not elected to be taxed as S-corp yet) as their community property, they can choose whether to treat the LLC as a disregarded entity or as a partnership for federal tax purposes.

If you want to look at the guidance, search for Rev. Proc. 2002-69

Good Luck

@Junior Picanco ,  forgot to mention that sometimes it's better to be taxed as a partnership. 

If one of you already have a high paying job, maintaining the partnership to allocate the SE income to the spouse that already has W-2 above the 128,400 income base could save you 12.4% of SE taxes. 

If not, ignore this. Maybe helpful in future.