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You and your spouse own an LLC. Maybe it’s a business or maybe it’s just a rental property. This question often comes up.

Should you file a separate tax return for the LLC?

In general you would file a partnership tax return for your LLC when both spouses are members, unless you elected to be treated as a corporation. This is true even though you and your spouse are filing a, married filing joint, tax return.

The exception is provided in Rev. Proc. 2002-69. If your ownership is considered community property under state law and you haven’t elected to treat the LLC as a corporation, the IRS will accept treating your jointly owned LLC as a disregarded entity that doesn’t have to file a separate tax return or as a partnership that does file separately. You can chose!

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