In a recent posting to its Website, the IRS says that “a business owned and operated by the spouses through a limited liability company does not qualify for the new joint venture election offered to husband-and-wife partnerships.”1

The IRS then cites Revenue Procedure 2002-69 for the special rules that allow a husband-and-wife owned LLC to elect single-member status if, and only if, the LLC is in a community property state.

The husband-and-wife operated business that files as a proprietorship needs to ... Log in to view full article.