That makes sense, as I can see how that can be confusing if one doesn't read it carefully and literally (with "literally" being the key word there). Sometimes when people are reading the IRS pubs they tend to "read between the lines" information that just flat out is not there. So if you're not careful it's easy to get confused without even realizing just how confused you are. But here's some information from that pub that most likely does not apply to you.
If you registered your LLC with your state and named more than one officer, then you do not have a single member LLC. For example, if you registered your name as the MGR (Manager) and your wife as a managing officer (Be it CFO, CEO or whatever) then you do *NOT* have a single member LLC. You have a multi-member LLC. For that you file a completely separate IRS Form 1065 Partnership return. THen the partnership will issue each owner a K-1 which each owner will use when completing their personal tax return. Now in states that are not a community property state, even if the two owners are married to each other, they can't use SCH C at all and must file the separate 1065 partnerhip return. However, for those in a community property state the IRS does have an exception.
When you have two owners of a multi-member LLC *AND* those two owners are married to each other *AND* those two owners will file a joint tax return, then you can include a SCH C with your joint 1040 tax return for each owner. All business income/expenses would be split between the two owners 50/50 unless your Articles of Incorporation state otherwise. Then each owner will report their share of the business income/expenses on their own SCH C.
Now if your business has depreciable assets this can be more trouble than it's worth really. So if you're in a community property state and both of you are the registered owners of the business, you have the choice of splitting your business income/expenses between two SCH C's or filing a single 1065 partnership return. THen for the K-1's the partnership would issue to each of you, you'll each report your individual K-1's on your joint 1040 tax return.
Hopefully I've not added to the confusion. But like I always say..............
He who claims to understand the situation and all aspects of it, is obviously not paying attention. 🙂
