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Commonly Asked Questions about Husband and Wife to Corporation Forms

Under this rule, a married couple can treat their jointly owned business as a disregarded entity for federal tax purposes if: the LLC is wholly owned by the husband and wife as community property under state law. no one else would be considered an owner for federal tax purposes, and.
Each spouse must file a separate Schedule C (or Schedule F) to report profits and losses and, if otherwise required, a separate Schedule SE to report self-employment tax for each spouse.
Spouses can co-own shares of a business, and, in fact, there may be legal and tax benefits for doing so. However, in the typical case of one spouse being involved with the business while the other is not, it usually does not make sense for the spouses to co-own the shares.
If you and your spouse plan not only on owning the business together, but both taking an active role in working there, an LLC taxed as an S corporation is your best bet.
To add new members, official voting must be held both by single-member LLC and multi-member LLCs. Then the voting outcome must be recorded and kept on file. After the voting procedure is completed, you can amend the operating agreement and file the state paperwork for adding the new member.
When your spouse owns any of the property you use in a LLC, you should include your spouse as a LLC partner. For instance, say that your spouse owns several cars that you plan to use in the business. For reasons of liability and taxation, it is best to include your spouse in the LLC.
When a spouse frequently works in an LLC, one of the best ways to avoid personal liability is to make the spouse a member. An LLC can add new members by following the terms of the operating agreement.