I have a client that operates as a LLC, consisting of husband and wife only, and the articles are written as "single member LLC". From all the info I can gather it seems this client can file his tax return as a sole proprietor (Schedule C) rather than the traditional Form 1065 for Partnerships. Would appreciate any comments.
-
-
Sch C?
Well, if it ends up being that it's a Sch C, then Spouse A could hire Spouse B as an employee, and benefit from some tax planning. Not least of which would be that some of Spouse B's benefit package would be a reimbursement plan for out-of-pocket medical (which would move at least some medical from Sch A to a Sch C deduction).
Just food for thought.
Bill -
in a community property state it's an SMLLC
in a non-community property state you have a partnership and must file as such.
There have been several long threads in the past related to this issue, but it comes down to this:
If it walks like a partnership, talks like a partnership and acts like a partnership it's a partnership.Comment
Comment