@wongkcus wrote:
Thanks Volvo Girl.
I think I will withdraw myself as a member of the LLc and let my wife then be a single member LLc.
That should allow filling under Home & Business and doesn't require 1065 anymore, right?
Don't make a bigger mess of things. Get an attorney's help.
You made an LLC, you are stuck with the legal and tax consequences until you change it. If you were a member of the LLC in 2020, the LLC must file a form 1065. If you withdraw in 2021, that might relieve you of filing form 1065 for 2021, but what then? Will you be an employee of the LLC? That has implications you need to know about. Will you be a subcontractor? Will you simply participate but hide your participation and not report any income? (That's a terrible idea for several reasons.). Changing the ownership of the LLC also has tax consequences. Some of it is paperwork -- the LLC needs a new EIN if it changes owners. Some may be of more consequence--is the other member (your spouse) going to buy you out? Are you giving them your equity? Do you know what effect that will have if you later sell the business?
Don't wreck your financial life because you don't want to spend an extra $200 for a tax program. You can also file a form 7004 to request an extension of the deadline to file the 1065.
https://www.irs.gov/forms-pubs/about-form-7004
You may want to take your entire situation to a tax professional this year.
