Can husband and wife who are only owners of a LLC in California file as single member LLC even though they have different shares in the ownership(%90-10%)?

arapianoacademy · ‎June 3, 2019

AlanT · ‎June 3, 2019

Yes, it does not matter what the percentages are as long as:

the LLC is wholly owned by the husband and wife as community property under state law
no one else would be considered an owner for federal tax purposes, and
the business is not otherwise treated as a corporation under federal law

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arapianoacademy · ‎June 3, 2019

so by this way 90% of the social security tax that we paid goes into credit of only one of the spouse, right?
I just don't know why turbo tax software says: The ownership percentage is the proportion of the business each of you owns. If you live in a Community Property State the ownership rules state that your ownership percentage is 50/50!

AlanT · ‎June 3, 2019

Because you live in California, the state has laws stating that property acquired by a married individual is owned in common with that individual’s spouse.

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arapianoacademy · ‎June 3, 2019

thanks for your help! what about my first question about the social security credit? will one of us get 90% of the SS credit or the SS credit will be 50-50 since we live in California?

AlanT · ‎June 3, 2019

Split 50/50 because you are a community property state.

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arapianoacademy · ‎June 3, 2019

I see. even our social security credits on the w2 incomes will be 50/50 at the time of retirement?

Can husband and wife who are only owners of a LLC in California file as single member LLC even though they have different shares in the ownership(%90-10%)?

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm