CA Qualified joint venture 568?

Forum|Forum|6 years ago
March 2, 2020
6 replies
49 views

Hi,

My wife and I own a business, and we decided to file as Joint venture since we live in one of the community state and we file joint. Based on some of the other threads we have divided the all the income, loss in Schedule C for federal, but not sure how do we file the 568 for CA now.

Should it be disregarded entity or partnership?

Also we have the TurboTax Home and Business, thought this is good enough since we are filing as Joint venture. Home and Business does have a Form 568 for Single Member LLC, can we use this, since for federal we are going Joint venture?

TurboTax Home & Biz Windows

DianeC958

Level 12

You can file in California as a disregarded entity. Since you live in a community property state half of the business belongs to your wife under those rules.

The purpose in filing two Schedule Cs for the Federal is if there is income and Social Security and Medicare tax is paid on the income by filing two Schedule Cs each person gets credit for the amount paid of Social Security and Medicare tax paid on the income for the Schedule C that is filed using their Social Security number.

What is a Qualified Joint Venture?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

gokulsAuthor

Level 2

So should there be two 568 or single one?

I see someone had similar question, but not answered yet.

https://ttlc.intuit.com/community/business-taxes/discussion/how-to-efile-form-568-for-a-husband-wife-llc-treated-as-disregarded-entity/00/374698

DianeC958

Level 12

Just one. The point is that for California since it is a community property state even though you file just one form 568 your spouse owns half of everything you own so there is no need to file a second form 568.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"