@teachwithgames_com wrote:
Does it change anything that we live in AZ a community property state?
thanks for any help/time on this,
If an LLC is owned by a married couple as community property in a community property state (and no other person would be considered an owner) and no election has been made to treat the LLC as a corporation, then the LLC is a "qualified entity" and can be treated as a disregarded entity at the discretion of the owners.
See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf
The question here, of course, is how the owners of the LLC have treated it in prior tax years.
