@JulieS
@J K
"If you live in a community property state, you can choose to be a single member LLC and file on Schedule C, or not file at all, if no business is done."
Not quite. If an LLC has only two members who are spouses and you live in a community property state, you file 2 schedule Cs, one in the name of each spouse, each one listing half the income and half the expenses.
Otherwise, you file a 1065 as you have been.
If you have no business activity, you don't need to file, but as you found out, the IRS may come knocking.
