I have a similar situation, also in California, and another poster claimed that that me and my spouse would no longer use Sch. C when splitting the sole proprietor but instead now have to treat it as a partnership and use form 1065. Does that sound right?
Thread link: https://ttlc.intuit.com/community/business-taxes/discussion/re-do-i-divide-sch-c-inventory-and-how-m...
