Husband and wife formed LLC 50-50 partnership. Should I file a separate Form 1065 for them, or can I include as a Sch C (or E) and simply check the box that it's husband+wife owned? They are wealthy, and I want to protect their other assets in case of lawsuit. I assume keeping funds strictly within an LLC bank account should work in either 1040 or 1065?

My second issue is that they want this property for: long term rental, short term rental, and wedding venue. How to handle a switch back and forth from C to E?