How to file for a Husband/Wife LLC for a future plumbing business in Oregon

[skycamper]

I have a friend who is a licensed plumber working for a plumbing company.  Him and his wife owe $45K in CC debt.  I told him there are two ways to get out of debt, increase your take-home pay and decrease expenses.    He asked how and I told him you need more plumbing work sir!   His company allows him to work on the side as long as it does not get in the way of his commercial plumbing job.   He is thinking of doing his own residential repair work by forming a small company with only him and his wife who is not working currently.   Ive started helping him by searching his best tax options since I do his taxes but I don't know anything about LLC's and C-corps, or S-scorps besides the basics.   

He plans to get licensed, bonded, and insured, His wife I'm sure will do all the admin work and send him to different addresses as soon as he can get a client base and be like his dispatcher and take complaints and calls. 

Oregon is not a community property state so single member LLC is out?   What would be the most advantageous to both of them for filing taxes and what does that structure look like?

[MinhT1]

As Oregon is not a community property state, a husband-wife LLC is not a disregarded entity and must file a LLC tax return (form 1065). 

As part of that tax return, there will be a Schedule K-1 for each partner which reports that partner's share in the profit/loss of the LLC and other items such as guaranteed payments or distributions.

You can use TurboTax online for small businesses to prepare form 1065 by clicking here

Or you can use TurboTax Business CD/Download on a Windows computer (not compatible with Mac).

You can purchase TurboTax Business CD/Download from this page.

[skycamper]

Thanks for the response, do you think this is the best tax structure for them?  Would this then be filled as a LLC s-corp?.  

[MinhT1]

I cannot advise whether it is the best tax structure as I would need to have more information on their tax and personal situation.

If they wish to be taxed as an S-corp (form 1120-S), then they would to opt for this by filing form 2553.

[skycamper]

Thank you for the info,  currently the husband works for a plumbing company as a licensed plumber and makes $45/hr and gets a w2, he’s also a disabled veteran.  his wife teaches piano in their home but makes very little little less than $5k a year on her schedule C.   They have a home and mortgage of $300k which is $2k/month.  No kids,  they are $45k in credit card debt.  

current goal is too get bonded, insured and keep working for the current company and work on setting up the LLC  on the the side doing plumbing repairs to eventually get to a point to have a few employees.  Wife will to the scheduling and admin work.  Eventually quit the regular job and do the new business permanently.

anything you can offer would be helpful.