LLC questions

I currently have a single member LLC for my insurance agency . This year, my wife and I started another LLC business that does estate sales. Would it be better for her to be a single member LLC for tax purposes on the second business and remove me or is it more advantageous for us to be partners in this LLC?

posted

The answer to your question is dependent upon several factors.

One of which to keep in mind is that, unless you and your wife hold your interests in the LLC as community property in a community property state, you will have to file a partnership return (Form 1065) for the LLC which adds more complexity to your tax situation.