A SCH C is used for a sole-proprietorship or single member LLC. However, the IRS does allow reporting income for a two owner business *PROVIDED* the two owners are married to each other, *AND* are filing a joint tax return. TO do this requires that all business income and expenses be split between the two married owners and reported on separate SCH C's for each of the married owners.
In some community property states because of their tax laws, this is not an available option and an IRS Form 1065 partnership return must be filed instead. The partnership will then issue each owner a K-1 and any other tax reporting documents necessary, that the owners will use on their personal tax return.
