Husband single member and wife single member LLC in Florida

Forum|Forum|2 years ago
May 4, 2023
2 replies
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My daughter currently has a single member LLC and is an independent contractor and delivers snack products to grocery stores as a route owner in Florida. Her husband is currently a W2 employee for another company but is about to quit and buy a separate grocery route to deliver bread. They have been filing jointly with her Schedule C income and his W2 income. The company they are delivering product for requires purchases to be as an LLC. Would it be best for her husband to set up his own LLC and could they then continue to file jointly with two Schedule C’s and separate SE tax forms?

It’s their preference to keep tax filing simple and continue with the sole proprietorship format, and keep the visibility of the separate businesses by using two separate Schedule C’s.

Not A Product Question

Best answer by Anonymous_

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Anonymous_Answer

Employee

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Opus 17

Employee

If they each have a separate business, they must each file a separate schedule C to report income and expenses for their own business. This is separate from the husband's decision to form a single member LLC, that is a legal decision, not a tax decision. Whether he is a sole prop or a SMLLC, he will file a separate schedule C for his separate business.

There are options to form one business that we could discuss, but you indicate they prefer to keep things separate, so I won't go into those other options unless you ask.

NeedllchelpAuthor

Thanks! If my daughter added her husband to her existing LLC would that make them partners and unable to file separate Schedule C’s as Sole Proprietors on a Joint Return? They are in Florida so thinking it has something to do with Florida not being a Community Property State.

Opus 17

Employee

@Needllchelp

Correct. An LLC with more than one owner/member must file a form 1065 partnership return. The only exception is if the only two members are spouses and they live in a community property state.