@2020CC
You are able to elect out, but only under certain circumstances:
- This is only possible for an LLC if you live in a community property state. If not, then you will be required to file a form 1065 (partnership tax return).
- If you pass that hurdle, then you need to meet the following:
- You and your spouse are the only members
- You file a joint tax return
- You both materially participate
- Split the LLC activity between two Schedule C's on your 1040
- I would also recommend that your operating agreement indicate ownership as John and Mary Doe 100% instead of listing each of you separately and showing ownership as 50%.
*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.
