In 2018, my wife and I formed an LLC for pass-through self employment income (mostly from my wife who is a consultant). Because we had two members, we filed our 2018 return as a partnership using Form 1065 and issued ourselves K-1s which went onto our 1040.
I've now read that our LLC is considered a disregarded entity / Single-Member LLC because we live in California, a community property state. I have read that we should not have gone the 1065/K1 route, but rather should have reported this directly on Schedule C.
But I'm not sure if that's accurate, or if this is going to be a problem.
I'm now working on 2019. Should we:
- Continue filing the LLC with 1065/K1?
- Switch to Schedule C?
- Amend 2018?
Note that we'll wrap up the LLC in 2020. I also have a Solo 401k for 2019, which is what got me investigating this.
Thanks!
