is Self-employed LLC owned by joint living trust disregarded entity?

Forum|Forum|3 years ago
February 9, 2023
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Hi,

I do the consulting work through my LLC which is owned by our Family (jointly by me and wife) living trust. For the Federal tax filing purpose, can both me and my wife just report the income from LLC on 1040 schedule C? Asking this because Since LLC is only owned by Joint Family living trust, which is basically a single member LLC and is disregarded and since Living trusts are disregarded as well and all the income passed to trustors and reported by trustors while living.

Should we just file 1040 with schedule C income for both me and wife or should we also need to file either 1045 or 1065 with k-1 issued to us?

Thank you!

Not A Product Question

Best answer by Anonymous_

You can use an optional method of filing for the trust where you do not need to file a 1041.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000286020

There is no need to file a 1065 since the LLC is a single-member LLC.

Anonymous_Answer

Employee

You can use an optional method of filing for the trust where you do not need to file a 1041.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000286020

There is no need to file a 1065 since the LLC is a single-member LLC.

kk603Author

@Anonymous_ - Thanks for the quick response and for that IRS site link. It really cleared my confusion.

I have one last question on this topic, during this year, only i participated/worked through LLC and generated income, when we file the taxes jointly, should we both me and wife report self employment income from LLC equally or can i assign full self employment income to myself and 0 for my wife?

Thanks