Forming LLc in Nevada w/ husband & wife as members

by Jerry
(Atlanta,Ga,USA)

If forming an LLC in Nevada w/ husband & wife as members if we elect sub s - can IRS decide to treat as a single member LLC because we are married?

Answer

You can choose either method of taxation--partnership or disregarded entity.

Use IRS Form 8832 (opens to a PDF in a new window--turn off your pop-up blockers) to elect your tax classification for your limited liability company.

If you don't elect a specific taxation method, the IRS can/will choose one for you. That's why it's important to decide which you want at the beginning and make your election in writing, via the proper form.

Note: Because Nevada is a community property state, the IRS permit a husband and wife LLC to be treated as a QJV- Qualified Joint Venture. This is not some in non-community property states--husband and wife LLCs are taxed as partnerships (or corporations), but not as disregarded entities.