@Sixgunsammy. You are commenting on an older thread, and if you have a question, you may want to post as a separate question. Having said this, you are correct. In a community property state, the IRS does allow for a married couple to file their LLC as a joint venture because the total profits must be split 50-50 between the two. For your Federal Return, you split all income and all expenses 50/50 on two Schedules C. You can designate one of the two as an LLC, and that should prevent any issues. In the California return screens, if there are fields to override income amounts, then do so. It may also be necessary to send California both Schedules C so they can have the full income reported. But you don't want to file 2 Forms 568 because it is only one LLC, and therefore only one LLC Franchising Fee. But since that fee is dependent on income levels, you will want to make sure that the state has the full income picture.
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