Key Takeaways
- Community property states: spousal LLC can choose (Rev. Proc. 2002-69).
- Common law states: spousal LLC = partnership (must file 1065).
- Community property: CA, TX, AZ, NV, WA, ID, LA, NM, WI.
- SMLLC with employees: needs own EIN for payroll.
- Check-the-Box election: keeps existing EIN.
- Structure change (sole prop → corp): new EIN required.
Last updated: January 2026
LLC Deep Dive: Spouses & EINs
Why This Matters for the Exam
Spousal LLC rules differ by state type. Know community property vs. common law treatment.
Expect at least 2-3 questions on LLC classification.
Spousal LLC Treatment
| State Type | Treatment |
|---|---|
| Common law | Partnership (must file 1065) |
| Community property | Can choose (Rev. Proc. 2002-69) |
Community Property States
| States |
|---|
| CA, TX, AZ, NV, WA, ID, LA, NM, WI |
Spousal LLC Choices (Community Property)
| Option | Filing |
|---|---|
| Disregarded | Two Schedule Cs (QJV) |
| Partnership | Form 1065 |
EIN Requirements
| Change | New EIN? |
|---|---|
| Sole prop → partnership | YES |
| Sole prop → corporation | YES |
| LLC check-the-box election | NO |
| S-election | NO |
| Name/address change | NO |
SMLLC Payroll Exception
| Purpose | EIN Used |
|---|---|
| Income tax | Owner TIN (SSN or EIN) |
| Employment/excise tax | LLC own EIN |
Real-World Scenario
Scenario: Husband-wife LLC in Florida (common law state).
- Common law: Partnership treatment required.
- Filing: Form 1065.
- Cannot: File as disregarded/QJV.
On the Exam
Expect 2-3 questions on LLC, typically:
- State Questions: "Spousal LLC in NY—classification?"
- EIN Questions: "Does check-the-box need new EIN?"
- Community Property Questions: "Which states allow choice?"
The key is to remember: Common law = partnership. Community property = choice (Rev. Proc. 2002-69). Check-the-box = keep EIN. Structure change = new EIN.
Test Your Knowledge
Husband-wife LLC in Florida (common law). Required filing?
A
B
C
D
Test Your Knowledge
LLC elects corporate status via Form 8832. New EIN needed?
A
B
C
D
Test Your Knowledge
Which is NOT a community property state?
A
B
C
D