Responses to your questions:
- As a husband and wife LLC (multi-member) and not residing in a community property state, you must continue to file form 1065, issue K-1's and report the activity on your personal tax return.
- The only reason you would file form 8832 is to make an election to change your entity form for federal tax purposes. Based on your facts you only have the ability to be taxed as an association and then you would decide whether you want to be a C corp or an S corp. Either of these choices requires a separate tax form from your personal tax return.
- The only way an entity is a single member LLC is if only one person is the owner. That is not an option for you based on your facts.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
