My husband and I are the sole owners of an LLC in North Carolina, in the remodeling/construction business. We have an EIN, and when I registered for it I had to select partnership as the IRS website wouldn't allow me to select Sole Proprietorship. For 2022 and 2023 we filed a 1065/K1 as I was told we weren't eligible for QJV as we are an LLC. I'm not being told that we can elect to be treated as a QVC since we aren't incorporated.
I'm reading the IRS instructions for 1065 and see this "A QJV conducts a trade or business where the only members of the joint venture are a married couple who file a joint return, both spouses materially participate in the trade or business (because mere joint ownership of property isn’t enough), both spouses elect not to be treated as a partnership, and the business is co-owned by both spouses and isn't held in the name of a state law entity such as a partnership or limited liability company (LLC)." Does this mean we can do it because we are both owners and an LLC is not a coowner? or we can't do it because we are an LLC and the business is organized as an LLC with us as the only two owners.
You cannot file as a Qualified Joint Venture since your business is held in the name of (organized as) an LLC.
Thanks, that's what I was interpretting, but I've received conflicting answers/interpretations from the Live Turbo Tax experts. One said we can't, as in agreement with you, we are organized and registered with the state as an LLC. But the other said that we can qualify as a joint venture because we aren't "Incorporated as a C- Corp or S-Corp". But in reading the IRS guidelines for 1065 and QJV it seems to indicate that we can't because of the LLC, even if we aren't incorporated.