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@Iraheta CPA wrote:

Because they reside in a community property state,

the IRS mandates the use of two Schedule Cs. Below is an excerpt taken directly from the IRS website explaining how to report federal income tax as a Qualified Joint Venture,

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Maybe I'm misunderstanding the rules, but I disagree.  Unfortunately, I can't find the citation I'm looking for.

The way I understand it, you are talking about two different things. 

The LLC in a Community Property State makes it a "Disregarded Entity", not a Qualified Joint Venture.  In your case, it is even a SINGLE Member LLC.  The treatment is almost the same, but not quite.

Again, I can't find the citation that I'm looking for, but from my understanding the LLC in a Community Property State files ONE Schedule C (because it is not technically a QJV), but files two Schedule SEs.