"An LLC owned solely by husband and wife [please see discussion below relative to living in a community property state] can be treated as a single member limited liability company"-- Sorry i do not think this is accurate. They live in Colorado, which i believe is not a community property State.
Does it qualify to elect as a joint venture? No
The spouses own and operate the trade or business as co-owners (and not in the name of a state law entity such as an LLC or LLP).
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...>
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@johndoecpa Please note the dates of postings of both the original question and the answers. The Answers clearly list the states where Community Property laws apply. Subsequent to the posting of the answers, the OP then supplied a comment indicating that they lived in CO - which was obviously not listed in the answer so reference to Community Property was no longer an issue once they supplied that information.
Once the OP's comment had been posted, the information in the earlier answer was the information they needed::
Copied from answer: "Note: If an LLC is owned by husband
and wife in a non-community property state, the LLC should file as a
partnership. LLCs owned by a husband and wife are not eligible to be “qualified
joint ventures” (which can elect not be treated as partnerships) because they
are state law entities. For more information see Election for Husband and Wife Unincorporated
Businesses.[2013: <a rel="nofollow" target="_blank" href="
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Election-for-Husband-and-Wife-Unincor...>
