The above answer is incorrect.
A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity. However, if the entity is owned by a husband and wife as community property under the laws of a state, as is the case here, then the entity is a qualified entity and can be treated as disregarded for federal income tax purposes.
See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf
If the LLC is treated as disregarded, then separate Schedules C can be filed and a Schedule C should be filed for each separate business as per IRS instructions.
