LLC Owned by Married Couple Generally Not Treated as Disregarded Entity

If an LLC is owned solely by a married couple who file their taxes jointly, the question may arise whether the husband and wife can be counted as one member allowing the company to be treated as a disregarded entity?  This would be beneficial because it would eliminate the need for separate federal and state tax returns for the company.  While there are instances where a husband and wife are counted as one (i.e. in S-corporations), this rule is not applicable towards Nebraska LLC’s.  An LLC solely owned by a married couple will by default be taxed as a partnership and the company will be required to file separate federal and state income tax returns.

© 2012 Parsonage Vandenack Williams LLC

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