Self employed partnership with spouses

[CherylFA]

How do I set up our sole proprietorship as owned by both myself and my husband?

[Laura_CPA · Accepted solution]

Hi CherylFA, 

Happy to help you, hope all is well with you! Is this an LLC? If it is, you can file as a Partnership (Form 1065) or you make elect to file Qualified Joint Venture as sole-proprietors (which will require to file 2 Schedule C with income and expenses cut in half).

Please see this link for additional information: https://www.irs.gov/businesses/small-businesses-self-employed/married-couples-in-business. 

Cheers,

Laura 

[TimS5]

If you have already formed a partnership and been operating as a partnership, you will want to file as a partnership on form 1065.  However, if a partnership has not been formed, you can file one schedule C if you are married filing joint.  You each will be social security tax based on your 1/2 share of the income on form 1040, schedule SE.  If you were to file married filing separate, then you would each file a schedule C reflecting 1/2 of the income and expenses.  The following is a link were more information may be found.  https://ttlc.intuit.com/community/business-taxes/discussion/can-my-husband-and-i-file-one-schedule-c...