I located a document on the IRS website: Rev. Proc. 2002-69 Tried calling the author of the document but the attorney who answered the phone said she can probably help me. My question: Does a Husband & Wife each a member of a 2 member AZ LLC (community property state), need to file a form 1065 (P'Ship)? The attorney took down my phone number and then called me back in 30 mins (impressed) and the attorney's reply is: The hushand & wife have the option to file a disregard entity (Sch C) or form 1065. No form is required to make this election but the Husband & wife must stay with their election.