We have 2 DBAs under 1 LLC. Husband and wife owned in a unity state. Do we list each DBA separately as income earned or combine and list only LLC?

Forum|Forum|5 years ago
December 20, 2020
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Should we list each DBA separately as income earned or combine all profits and losses while listing just the LLC that both of these DBAs fall under?

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Best answer by Anonymous_

If you own more than one business, you should complete a separate Schedule C for each business,

See https://www.irs.gov/instructions/i1040sc#idm140229426651824

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Anonymous_Answer

Employee

If you own more than one business, you should complete a separate Schedule C for each business,

See https://www.irs.gov/instructions/i1040sc#idm140229426651824

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Opus 17

Employee

You own only one business, that is your LLC. If you choose to operate under two different DBAs, that is a matter for state regulation, not the IRS. Because you choose to perform both sets of business activities under the single LLC, you must file a single tax return for the LLC.

Under most circumstances, an LLC with more than one member or owner must file a form 1065 partnership tax return. This creates a K-1 statement for each partner that is entered on the partners personal tax return. However, if you live in a community property state, and if the only two members of the LLC are spouses, then you may file as a qualified joint venture. You will file 2 schedule C ‘s, one in the name of each spouse, and each LLC will list half the business income and half the expenses.

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Anonymous_

Employee

The above answer is incorrect.

A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity. However, if the entity is owned by a husband and wife as community property under the laws of a state, as is the case here, then the entity is a qualified entity and can be treated as disregarded for federal income tax purposes.

See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf

If the LLC is treated as disregarded, then separate Schedules C can be filed and a Schedule C should be filed for each separate business as per IRS instructions.