SCH C does not come into play here at all.
As a multi-member LLC (Accident or not) you are correct that a 1065 needs to be filed. Then each partner is issued a K-1 which gets entered on the 1040 joint return. All the K-1 information ends up on page 2 of the SCH E.
Now I'm not familiar enough with community property state rules, so I don't know if you can just report it as you always have on SCH E, then select the option (available in forms mode only) to identify it as a Qualified Joint Venture. But I do know nothing concerning the rental gets reported on SCH C. Therefore a SCH C does not even need to be completed.
@Anonymous_ ?
