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I have a client whose lawyer set up a single member LLC for their rental property. The LLC agreement states the sole member is the husband and wife. From what I have researched, if a married couple owns an LLC, a partnership return would need to be filed. The client is of the understanding that the lawyer set it up in such a way so the partnership return would not have to be filed.
The EIN letter from the IRS states single member, but I am guessing this was because the law office clicked that when they applied for the EIN. I asked for the agreement. The agreement say the single member is Mr & Mrs., jointly 100%.
Am I correct, that a partnership return will be required, or is the way the lawyer set this up, allow them to file a Schedule E on the personal return?
Thank you in advance