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Posted by Harlan Lunsford on September 27, 2007, 2:37 am
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makbo2@gmail.com wrote:
> Benjamin Yazersky CPA wrote:
>>> Hello please bear with me I'm trying to wrap my head around
>>> this whole starting a business thing.
>>>
>>> My wife and I want to start up a small business. We've
>>> already gone out and got a DBA now I'm wondering what I need
>>> to do next.
>>>
>>> 1. I was reading since my wife and I will be the only
>>> employees we can be considered a join venture per a new law
>>> passed in 2007. Is this true?
> [...]
>> Per the 2007 tax law, a husband & wife in a business
>> together may be able to file a sch c instead of a
>> partnership tax return for their business. There may be
>> issues to deal with if your business is an LLC. Exactly how
>> some states are going to treat it is still being figured
>> out.
>>
>> You will likely need a EIN for your business. You may have
>> to register in some form or fashion with your state as well.
> Paul Thomas got it right. The new federal law allows a
> taxpayer and spouse to each file a Schedule C for a joint
> venture, instead of a partnership return. Previously this
> was only allowed in community property states.
>
> There is no such thing as a "joint" Schedule C, just as
> there is no joint self-employment tax. Each spouse must
> account for his or her share of self-employment net profit
> and pay SE tax accordingly. Two Schedule C's, in other
> words.
From what I've heard of the new law, yes indeed, only one
schedule c need be filed in any state, communistic or
regular type state. Then separate schedule se's may be
filed, divying up the profit for SE tax purposes.
More to come.
ChEAr$,
Harlan Lunsford, EA n LA
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