FAQs Regarding Taxes: Can a husband and wife operate a business - TopicsExpress

FAQs Regarding Taxes: Can a husband and wife operate a business as a sole proprietorship or do they need to be a partnership? Answer:Unless a business meets the requirements listed below to be a qualified joint venture, a sole proprietorship must be solely owned by one spouse, and the other spouse can work in the business as an employee. A business jointly owned and operated by a husband and wife is a partnership (and should file Form 1065 (PDF), U.S. Return of Partnership Income) unless the spouses qualify and elect to have the business be treated as a Qualified Joint Venture, or they operate their business in one of the nine community property states. (via IRS)

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