Info about the Limited Liability Company & Corporation
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Is a Limited Liability Company owned by a Husband and Wife Considered a Single Member LLC?

Many husbands and wives start business ventures together – it is a great thing to be able to work together to build something.

For state purposes, an LLC that has ownership interests issued to a husband and other ownership interests issued to a wife is considered a multi-member LLC for state purposes.  Each person has his/her own set of ownership interests. 

For federal income tax purposes, the classification of the LLC depends on whether the state of formation is a community property state (e.g., Arizona, Texas) or not. 

The great majority of states are NOT community property states.  In these states, a limited liability company owned by a husband and wife is considered a multi-member LLC and so is taxed, by default, as a partnership.

If the state is a community property state, then the IRS views an LLC owned by a husband and wife as a single member LLC and so it can be taxed as a disregarded entity.  In other words, the LLC qualifies as a single member LLC for federal income tax purposes only.