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MBStock22
New Member

Two member LLC Married

Trying to figure out taxes for this upcoming year, my husband and I just started an LLC for a handyman business, he does the physical work, I run the office. We set it up as a 50/50... however I see some places online that say married couples can file as a sole proprietor, but it seems others show we have to file as a partnership. I am really confused on this. I also am not sure how we should pay ourselves. Beings this is just starting out, I don't really want to set either of us up on salary, but would prefer to do a draw. How will this effect our taxes come time to file?

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1 Reply
Carl
Level 15

Two member LLC Married

If you live in a community property state, then as a married couple you have the choice to file a 1065 partnership return, or the two of you can split everything 50/50 and file two SCH C's with your joint tax return, with one SCH C for each of you.

If you do not live in a community property state, then you do not have a choice. You must file a 1065 partnership return. The partnership will then issue each owner a K-1 which each owner will use on their personal tax return. It does not matter that the two owners are married to each other and filing a joint personal 1040 tax return.

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