"My business is set up as an LLC with 2 members each are 50% owners. 100% of our income is reported on a form 1099 Misc, box 7. Should I enter this as "Total Amount (incl

[ChristinaS]

Are you usingTurbo Tax business to prepare your partnership return? It says you are using SelfEmployed, which would not be correct for a 2 person LLC- unless the business is 2 spouses who live in a community property state.

[weltklang]

We are 2 spouses in Texas... But I am actually using TT Business downloaded, not online version... Started using the online self employed and decided to download business

[ChristinaS]

Ok, just checking... So, you are not electing to file on 1040 with 2 Schedule C's? You are choosing a 1065?

[weltklang]

I thought I had to use a 1065 because we are set up as an LLC... a 1040 with two schedule C's would make my life easier if it's legal

[ChristinaS · Accepted solution]

2 Schedule Cs are permitted for a spousal LLC when in a community property state. Otherwise, a 1065 must be filed.

So, you actually fit the exception and can elect to be treated as a Qualified Joint Venture (2 Schedule Cs) if you wish.

You would want to be consistent with this. As far as "easier", that depends. Some find it easier to report the business income and expenses once, and then just use the K1 forms to split it. If you prepare on 2 Schedule Cs, you need to split income, assets, and expenses directly, which can sometimes be more onerous.

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

https://www.irs.gov/pub/irs-drop/rp-02-69.pdf