Husband and wife are only members in a California LLC. California is a community state and the LLC is treated as a disregarded entity for tax.
If only one spouse materially participate in the business and the other didn't materially participate in a year, should one schedule C (under one spouse) be filed for that year?
If next year, both spouses materially participate in the business, should two schedule Cs be filed (husband and wife split all income and expenses)?
Between those two years, are there any additional forms that needs to be filed with irs to reflect the change?
