In a community property state a married couple owning an LLC has the option to be treated as a qualified joint venture and disregarded entities, or as a partnership. If your LLC files Form 1065, you've chosen to treat the LLC as a partnership, for federal purposes it's not a disregarded entity and is not reported on Schedule C.
Where is TurboTax asking you to indicate a disregarded entity? Is it in the California module? I thought whether or not the entity was disregarded that was implicit in whether you reported the LLC's income by entering a Schedule K-1 or by reporting income on Schedule C.
