If you are in a community property state and elect to file the LLC as detailed in Thomas's link, as a Qualified Joint Venture (excerpt copied below), you would file 2 separate Schedule Cs, one for you and one for your wife and you would only need TurboTax Home and Business (personal product). For non-community-property states, you file the LLC on Form 1065, and yes, you would use TurboTax Business (not home and business) to prepare the Form 1065 and the software will generate the two K-1 forms that you will enter on your personal tax return using Home & Business, later. You will need to do the Form 1065 before your personal return because you will need the K-1s. The 2 Schedule Cs route will require only one program whereas the LLC 1065 route requires both programs be purchased.
Election for Married Couples Unincorporated Businesses - IRS document - this should help you to decide which route you should (or can) take. Partnerships and LLC (as community property) entities may qualify for the election on the federal return, but each state has its own tax laws. State taxing authority links. In the husband and wife’s LLC Operating Agreement (the document which lists who owns the LLC, among other things), instead of listing the membership interests as “John Smith, 50%” and “Molly Smith, 50%”, it’ll be listed as “John and Molly Smith 100%”.
Here is another informative article on the subject from the Journal of Accountancy. LLC owned solely by spouses: A partnership or a joint venture?
From Thomas's Journal of Accountancy link - '''Unincorporated businesses owned by more than one person normally are required to file a partnership tax return. However, there is a specific exception for qualified joint ventures when that status is elected under Sec. 761(f). Under this provision, a qualified joint venture consists of a partnership whose only partners are spouses who file a joint tax return and who both materially participate in the business.
Businesses that meet the definition of qualified joint venture may elect to file two Schedules C, Schedules E, or Schedules F, with the couple's joint tax return, instead of filing a partnership tax return. Each Schedule C or F should report one half of the business income and expenses for each spouse. The purpose of reporting half the income or loss for each spouse is to properly allocate self-employment income, and self-employment tax, to each spouse which generates credits in the Social Security system.
Given the additional effort involved in filing two Schedule C or F forms, some businesses may decide it is easier to file a single Form 1065 partnership tax return and report the business on a pair of Schedules K-1, Partner's Share of Income, Deduction, Credit, etc., on Schedule E.''' @CTBRDCC
-------------------------------------------------------------------------------------------------------------------------------Although the names may be similar, TurboTax Business and Home & Business are 2 completely separate products. Home and Business is for PERSONAL tax returns, but you can include multiple Schedule C unincorporated single member entities on a personal tax return. All other business returns need their own tax return prepared from a Business software. Anyone that has to use the Business software will also need a personal tax product for their personal return. Only single member sole props, Schedule Cs, or Qualified Joint Ventures can be filed on a personal return. And those are IRS's rules, not TurboTax's. @kal117
[Edited 05/05/21]
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