My husband and I are the sole owners of an LLC in North Carolina, in the remodeling/construction business. We have an EIN, and when I registered for it I had to select partnership as the IRS website wouldn't allow me to select Sole Proprietorship. For 2022 and 2023 we filed a 1065/K1 as I was told we weren't eligible for QJV as we are an LLC. I'm not being told that we can elect to be treated as a QVC since we aren't incorporated.
I'm reading the IRS instructions for 1065 and see this "A QJV conducts a trade or business where the only members of the joint venture are a married couple who file a joint return, both spouses materially participate in the trade or business (because mere joint ownership of property isn’t enough), both spouses elect not to be treated as a partnership, and the business is co-owned by both spouses and isn't held in the name of a state law entity such as a partnership or limited liability company (LLC)." Does this mean we can do it because we are both owners and an LLC is not a coowner? or we can't do it because we are an LLC and the business is organized as an LLC with us as the only two owners.
