Vanessa A
Expert Alumni

Get your taxes done using TurboTax

You are correct.  Since the LLC will be formed in HI, if you are choosing the LLC format, then you will need to file the 1065.

 

A business jointly owned and operated by a married couple is a partnership (and should file Form 1065, U.S. Return of Partnership Income) unless the spouses qualify and elect to have the business be treated as a qualified joint venture, or they operate their business in one of the nine community property states.

Since you have elected to be treated as an LLC, you do not otherwise qualify for the qualified joint venture, since you are not OPERATING in one a community property state. If the LLC was formed and operating in CA, then you would not need to as a married couple.

 

You would also need to file a HI N-20 for HI and a 1065 for the IRS.  The LLC would fall under HI rules.

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