I don't understand this part: "These are businesses (not rentals or investments). Do I report on a Sch C, Sch E or just as a K1 on the Sch E page 2. Also, there is section 179 to consider for the purchase of an asset in the SMLLC."

They formed this LLC; they intend to "treat our personal car as business" which implies they are "doing" some sort of business. Otherwise, that would simply be Scamming the tax system, right?

"The asset was an automobile. There is no Sch C or Sch E"

So, are they or are they not "An LLC" or are they two "SMLLC" because so far, everything conflicts with each other here.

The people can have invested into other businesses, which spins off K-1. That would have nothing to do with their own need or operation of their own business as LLC or Sched C.

Who is giving these people their guidance?