@Cashrob817 wrote:
Would my wife count as another member or still one member if she is listed on the LLC?
If your spouse is listed on the paperwork as a member separate from you, then she is a member separate from you.
It is important to understand that LLCs are created by state law and they are not recognized by the IRS as having any special tax status. A single member LLC is treated by the IRS as a disregarded entity, the same as a sole proprietorship, and would file a schedule C (unless the SMLLC files special paperwork to be taxed as an S-corporation).
An LLC with more that one member is treated by the IRS as a partnership and files a partnership tax return form 1065. This has different requirements, different deadlines, and substantial penalties for getting it wrong. Each partner gets a K-1 statement from the partnership that is entered on their personal form 1040.
The only exception to this rule is if the only 2 members of the LLC are spouses in a community property state. In that case only, each partner files a schedule C in their name to report half the income and half the expenses. In a non-community property state or if one of the members is not a spouse, the multi-member LLC must file a partnership return.
The legal protections offered by an LLC vary from state to state, we can't give you legal advice on that.
