Filling taxes as a marriage

[ati2003]

My wife and I own an LLC, we are the only two owners and the LLC is a partnership. Regardless of the advantages of filing taxes jointly, Is it possible we fill taxes separately or do we always have to fill taxes jointly? Can she do that if she wants to file taxes on her own?

Thank you.

[Mike9241]

each year a married couple (married on 12/31) can choose between a joint return and married filing separately (MFS). MFS is usually a bad choice because certain deductions and credits are limited or not allowed. For deductions both must use the same option - either the standard deduction or itemized deductions. 

the issue is that 3 returns are needed to see which is best. 1 joint and 2 MFS returns (state returns, if applicable, also need to be completed). Turbotax can not split a joint filing between the two spouses  

you need to review each return to ensure they are correct which requires paying the Turbotax fees. summaries that are given without paying may not accurately reflect what the returns show. 

[ati2003]

Thank you Mike. I know that. But my question is about when the marriage owns an LLC partnership and they are the only two owners. In this case, they still can file taxes separately?

Regards.

[Vanessa A]

Which state do you live in?   If you live in a community property state, then depending on the actual state rules, you would be treated as a disregarded entity and you would both include a Schedule C on your return.

If you are not in a community property state, you may have to file a Partnership form 1065 which you would need to use TurboTax BUSINESS to do not home and business.  This will generate a K-1 which you will then enter on your returns.   You can file taxes jointly or separately, it does not matter.  You will each have your own K-1 or your own Schedule C. 

What is a Schedule K-1

What is form 1065

[ati2003]

Thank you Vanessa. My wife lives in Texas and she has an SSN, the LLC was created in Texas and I live outside the USA, I don't have an SSN just an ITIN.

Regards.

[Vanessa A]

This makes things different.  The filing requirements of a US citizen or resident alien are different than a Non Resident Alien. 

Is your wife a US Citizen or Resident Alien?  

For your filing, I would suggest you contact a company like Sprintax.com who handle Non Resident Alien returns.  They would be better able to advise you on what all you need to do. 

[ati2003]

My wife is a resident alien.

My main question is regarding our LLC. Being both of us the owners of the LLC, are we forced to file taxes jointly or can we file taxes separately if we choose that?

Regards.

[Vanessa A]

Answering ONLY the question if you are forced to file jointly because of the LLC, the answer is ,No, there is no requirement for you to file taxes jointly because you have an LLC.  

I would strongly suggest getting additional information on the LLC filing requirements in Texas with one partner being a NRA.  It may affect your ability to not file a 1065 which would include ALL income and then divvy out from there.