The LLC is not required to be a disregarded entity, but in California (or any community property state) you have the option to treat it as a disregarded entity. That means that you file your tax return as if the LLC didn't exist. It's disregarded. You do not file Form 1065, and there are no Schedule K-1s.
You didn't provide enough information to know whether you report your Airbnb income on Schedule E or Schedule C. If you use TurboTax Online, and you report the Airbnb income on Schedule E, you can use Premier. If you report on Schedule C you will have to use Self-Employed. If you use the CD/Download TurboTax software you could use any edition, but I would recommend Premier for Schedule E or Home & Business for Schedule C, because you get a more detailed interview, with more guidance and help for your situation.
If this is the first year that you are reporting Airbnb income, I would suggest that you consult a local tax professional to make sure that you report it properly and that you understand all your tax obligations.
I did not mean to imply that you have to elect to treat the LLC as a corporation. But you do have the option to do that. I had to ask because, if you did elect to have it treated as a corporation, the answer as to what TurboTax product you need would be entirely different.
Is it a single-member LLC or multi-member?
If there is more than one member, are you and your spouse the only members, or are there other members?
If you and your spouse are the only members, what state are you in?
One more question:
Has the LLC filed Form 8832 to elect to be treated as a C corporation or Form 2553 to elect to be treated as an S corporation for tax purposes?
We elected to treat the LLC as a multi member partnership. We don't need to file either of these, correct?
Sorry... I missed your first reply. Yes, it is a multi-member LLC with just my wife and I as members. My understanding is we do not have to elect a corporation status ad this is a disregarded entity. Am I misunderstanding?
We are in California and have submitted all of the required documents to the state.
The LLC is not required to be a disregarded entity, but in California (or any community property state) you have the option to treat it as a disregarded entity. That means that you file your tax return as if the LLC didn't exist. It's disregarded. You do not file Form 1065, and there are no Schedule K-1s.
You didn't provide enough information to know whether you report your Airbnb income on Schedule E or Schedule C. If you use TurboTax Online, and you report the Airbnb income on Schedule E, you can use Premier. If you report on Schedule C you will have to use Self-Employed. If you use the CD/Download TurboTax software you could use any edition, but I would recommend Premier for Schedule E or Home & Business for Schedule C, because you get a more detailed interview, with more guidance and help for your situation.
If this is the first year that you are reporting Airbnb income, I would suggest that you consult a local tax professional to make sure that you report it properly and that you understand all your tax obligations.
I did not mean to imply that you have to elect to treat the LLC as a corporation. But you do have the option to do that. I had to ask because, if you did elect to have it treated as a corporation, the answer as to what TurboTax product you need would be entirely different.
Remember that if you choose to treat your Husband & Wife LLC as a "disregarded entity" and choose the Schedule C route, you will need to file two equal Schedule C's - one for each of you.
This is called a "Qualified Joint Venture" or QJV by the IRS. More details can be found at the Election for Married Couples IRS web page.