disregarded entity

Forum|Forum|3 years ago
February 28, 2023
2 replies
14 views

Regarding disregarded entity if husband and wife own jointly an LLC that was opened in Florida is it still considered as one person and would not require any LLC tax return filing (because it would be considered a disregarded entity). Thank you

P.S. Assuming it is not a disregarded entity since it is owned by 2 people can husband gift his wife his half to make it fully owned by the wife to make it a single member LLC and therefore make it a disregarded entity?

Lacerte Tax

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TaxGuyBill

Level 15

It is not a Community Property State, so it is a Partnership.

If it becomes owned by only one of the spouses, then any business after that is no longer a Partnership, and the prior Partnership needs to file a final return.

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TaxGirl3

Level 5

I agree with @TaxGuyBill if they "jointly own an LLC". However, if they in fact both own the LLC as tenancy by the entirety, it should qualify as a SMLLC, since the tenancy is a single ownership.

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TaxGuyBill

Level 15

@TaxGirl3 wrote:

However, if they in fact both own the LLC as tenancy by the entirety, it should qualify as a SMLLC, since the tenancy is a single ownership.

Thanks, I keep forgetting about that because it doesn't exist in my state.

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