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Form 1065 or Schedule C for my LLC co-owned by my wife and I

My wife and I started a LLC this year, filing tax return for the first time. We reside in a community property state. When I filed for the EIN, without knowing that our LLC can be treated as a disregarded entity, I picked multimember LLC. As a result, the CP575 we received from IRS states that we need to file Form 1065. 

 

While we like the simplicity of only filing schedule C (same deadline as personal income tax etc.), we want to know if it is possible for us to file schedule C despite of the Form 1065 indicated on CP575. Do we need to file for an entity change with the IRS? Or write a letter to request the correction? Or can we ommit that step and proceed filing schedule C and not Form 1065?

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3 Replies
MinhT1
Expert Alumni

Form 1065 or Schedule C for my LLC co-owned by my wife and I

Your husband-wife LLC in a community property state is a disregarded entity for tax purposes and you can file a Schedule C for it on your joint personal tax return.

 

The language in the form CP575 is standard for an LLC. There is no other step for you to take.

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Form 1065 or Schedule C for my LLC co-owned by my wife and I

Thank you for your input.  Just want to be extra sure because it does state on the CP575 that I received that '' Based on the information received from you or your representative, you must file the following forms by the dates shown. Form 1065  03/15/2026''. Is that just a standard language that can be ignored in my case? Will IRS automatically recognize my LLC as disregarded entity, formed in community property state, co-owned by husband and wife only without any formal writing or request from me when I filed schedule C on my personal income tax return?

 

Someone told me that I should file Form 8832 for entity classification election. I am not sure if that's the correct way to proceed, looking for more clarification. Thank you.

RobertB4444
Expert Alumni

Form 1065 or Schedule C for my LLC co-owned by my wife and I

As long as you make certain to enter the EIN for your LLC on your schedule C then that should cover the filing for the IRS.  You can file an 8832 as well, though, if you want to be doubly careful.

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