Husband and Wife LLC Members

[Harvey Lucas]

My client Jack became a member in an LLC in 2007.

He was to hold 1/2 interest.

The other member, a Corporation, holds the other 1/2 interest.

The attorney who drew up the papers listed my clients interest as Jack and his Wife Jill and the maritial community comprised thereof.

So then Jack and Jill hold a 50% interest in the LLC.

The LLC is to be taxed as a partnership.

My question is, how should I present the K1s for Jack and Jill?

Should I show Jack and his SS# as 50%

Or, should I show Jack 25% and Jill 25%

Or, have Jack and Jill become "Partners" for purposes of holding a joint 50% interest in the LLC, and as such the "Partnership" of Jack and Jill needs to get its own tax id#.

Jack and Jill live together in blissfull harmony in a community property state.

Harvey Lucas

[Harvey Lucas]

Thanks Matt

SE tax is not a big issue since it is a rental real estate activlty.

I think I will go ahead then and list Jack and Jills membership interest on one K1 all under Jacks name and SS#.

Since they live in a community property state, this will produce the same tax consequence as a 25% Jack, 25% Jill K1's, even if they were to file seperate returns.

It is primarily his activlty anyway.

Thanks Again,
Harvey Lucas