Vanessa A
Expert Alumni

Get your taxes done using TurboTax

Tax wise, in general it will not make any difference on your taxes as there is not a tax benefit to an LLC.  

 

If you file as an LLC, the LLC is a flow through.  This means all income that the LLC receives is distributed to the partners.  There are no retained earnings meaning if the LLC earns it, even if you do not distribute it, it is still basically taxed as though it has been distributed.  So if you and your wife are the only partners, you and your wife would claim 100% of the income split however you chose to split the ownership in the LLC.

 

This would be the same as if you are doing it under your names alone.

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