Single memebr LLC or add my wife?

3 Replies

I want to do an LLC on my properties. Cpa says its worth to add my wife on it to have its own tax preparing. Most i know do single person llc. What do you guys recommend ?

It would be helpful to know what state you're a resident of and where your properties are located...

There's a lot of moving parts here and this decision should be the product of deep conversations between you, your CPA, and attorney, as there are current and future legal ramifications to adding your wife to the LLC.

For tax, if you're in a community property state, there's a rev proc out there that allows a solely spouse-spouse owned LLC to file as a disregarded entity for income tax purposes. This route is usually advantageous as it saves the couple a partnership filing and the associated professional fees.

At the surface level it appears your CPA is advising you to do this with the goal of getting you to file a partnership return.  I would hope this isn't the case, as you gain nothing but your CPA gets another return and related fees...