RE: [taxchat] Husband-Wife LLC & OIH

If you look at it from the perspective of the "check the box" rules, the IRS interpretation is consistent. By default an LLC with more than one member must file a partnership return. My question is why lawyers are so quick to recommend forming corporations and LLCs in situations where it is not clear that it is beneficial to the client.

 

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From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Lynne Ayton
Sent: Tuesday, October 28, 2008 5:20 PM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Husband-Wife LLC & OIH

after reading all of this thread, it seems to me IF irs really wants to "simplify" things, h/w reporting a sched C would be the way to go whether its an LLC or not.  just the reduction of paperwork makes sense ... but who says irs makes sense ...
lynne

Mel Wolfson wrote:



It seems that Gear Up, NATP agree on this. I heard the same mentioned by a speaker from NSTP at the most recent IRS forum. Logically, it makes sense that if the spouses are operating as one entity recognized as such by state law, they should report their income in a manner that reflects this.

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