CA-business
Returning Member

Business & farm

Thanks for the quick reply, Carl!

My understanding after reading irs/ftb site was in CA married owner can choose to file as single member llc and business income will be divided between husband and wife. They’ll fill separate schedule C and SE. 

 

I’m just trying to avoid this situation where we have to pay self employment taxes especially social security part (12.4%) on my wife’s share if I can claim the whole business income on my SE. 
I can’t find a clear rule or explanation about the division of business income for husband and wife. Is it always going to be 50/50 in community property states?