I added my wife to my llc. how do i prepare her schedule c in comparison to mine? Do I split all profits and expenses equally and enter both the same way?

[joe4]

We are equal 50-50 ownership. I am assuming I have to divide all income and expenses and enter them into each sched. C.? I started going through TT and it started increasing my tax liability for EXPENSES that I am entering. I am not sure why.?.?.?

[TaxGuyBill]

What State do you live in?

[joe4]

Pa

[TaxGuyBill · Accepted solution]

Because Pennsylvania is not a Community Property State, you must file a Partnership return, rather than two Schedule Cs.  That is a completely separate tax return, and you will each receive a K-1 from the Partnership to enter into your personal tax return.

Although TurboTax "Business" (not "Home & Business") can do a Partnership return, I would recommend a tax professional for at least the first year.

https://irs.treasury.gov/rpo/rpo.jsf