Qualification for qualified joint venture

[AN_598342]

We're a married couple who registered for a general partnership with a DBA in NYC last year. We both work on this business and split profits and expenses 50/50. Can we file jointly and as self-employed and not file Form 1065? And if so, should we use our individual SSNs, or should we use the partnership EIN we registered when opening the Square account to receive sales payments? 

[LaShaunA3 · Accepted solution]

Since you registered a general partnership, the business is generally required to file Form 1065, and each spouse reports their share of income or loss from the Schedule K-1 on your joint Form 1040.

The IRS allows a Qualified Joint Venture only when spouses jointly operate a business that is not organized as a state-law entity, such as a partnership or LLC.

Because your business is registered as a partnership, you would  file Form 1065 and use the partnership EIN, not your individual SSNs, for the business filings.

For more information, see,

Election for married couples unincorporated businesses