My wife and I own an LLC. The first couple years in business we paid a CPA to file our taxes. He filed as a partnership on a 1065 and issued K1 forms to each of us. Then the K1 forms get added to other income on our personal 1040.
I'm planning to do our taxes myself this year. From what I'm reading, an LLC can file as a "disregarded entity" and simply report revenue and expenses on schedule C as part of our personal return - but that only applies to single member LLC's, not partnerships.
I'm trying to figure out if I can use this method (schedule C) for our business since its jointly owned by a married couple. There are no other owners or partners and we intend to file a joint return for our personal 1040 so all the income will end up on that same joint return anyway. Some sources say yes, some say we can but must file 2 schedule C forms (one for each of us), and other sources say this isn't allowed at all and we have to keep doing 1065/k1 returns.
So 3 questions:
1. Can we file on schedule C?
2. If so, do we need separate schedule C forms or can I just put all the income in one spouse's name since the end result is the same anyway?
3. If we can file on schedule C, do we need to provide any notice to the IRS of our intent to change from 1065 to a disregarded entity, other than just filing the 1040 with schedule C form(s)?