a Multi-Member LLC is rarely a Disregarded Entity. By default, a Multi-Member LLC will be taxed as a Partnership
Normally I would agree...but, when comes to only husband/wife owners filing joint return, things get a bit more murky. If one of the parties was a third party filing a different 1040, I would totally agree F1065 should have been filed as then it could not have been disregarded. But, since everything is fully reported on their 1040 via Sch C, and it was essentially her business (he said he was a silent owner and did his own employment work), and they have been doing that for years, finishing up her Sch C and his taking over the business on his own Sch C (which is now a true single member LLC disregarded entity) would appear to be correct. Technically, when she passed away, it became a single owner LLC and appears it was that way when assets were sold. Thus, the sale took place after the informal partnership was dissolved. And again, any and all tax ramifications go to the parties same 1040.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
