JRC
Level 8
01-04-2022
09:54 AM
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Husband and Wife and (Spouses) LLC's in "Marital Property States" may treat the LLC as a disregarded entity. Either way I would look at the advantages of doing either for the client.
The IRS has issued a special rule applicable to LLCs owned by married couples who live in community property states. Under this rule, a married couple can treat their jointly owned business as a disregarded entity for federal tax purposes if: ... the business is not otherwise treated as a corporation under federal law.