Business & farm

If you and your husband happen to reside and operate the business in a community property state (Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin), then there is another option.

 

If you each own the business (the LLC) as community property, there are no other owners, and the LLC is not treated as a corporation for federal income tax purposes, then you and your husband have the option to treat the LLC as a disregarded entity and each file your own Schedule C.

 

See Rev. Proc. 2002-69: https://www.irs.gov/pub/irs-drop/rp-02-69.pdf

 

Frankly, you should see absolutely consult a tax professional concerning your situation.