Husband and Wife LLC - TaxMama.com

hey it's tax quips time from tax mama

calm today tax mama here's from Rachel

and the tax scripts forum who needs

clarification she says my husband and I

are the only owners of our LLC from my

understanding in our state Arizona we

can file a Schedule C with our 1040 when

I try to do this with TurboTax it

prompts me to divide all the expenses

and sales by two and complete a separate

Schedule C for each of us using the same

employer ID number does this make any

sense is there anything else we have to

do well Rachel I understand with

TurboTax is asking for it you see

several years ago IRS simplified

partnership filing for married couples

just read this follow this link and

watch your head spin but as long as you

don't have any payroll any employees

this works out pretty easily it splits

the profits between you and your husband

so each of you pays into your social

security account in the old days before

simplification we simply check the box

on the Schedule C input for a joint

Schedule C in the computer split the

profits and produced to schedule SES now

self-employment schedules of course if

you attribute all the profits to just

one of you though then one person Social

Security count soars and this will

generate much higher benefits if the LLC

is highly profitable that way you might

generate more money to share in your

retirement than two separate accounts

with less money you can of course just

report it all on one Schedule C if you

like to achieve that effect so those are

your options one or two schedule C's

instead of filing a partnership return

and remember you can find answers to all

kinds of questions about LLC's and other

tax issues free where where else attacks

mama calm