The IRS states specifically that a limited liability company (LLC) cannot elect to be a QJV. But IRS Revenue Procedure 2002-69 (PDF)says that a husband-wife LLC in a community property state can make the decision to be taxed as either a partnership or a disregarded entity (that is,using two Schedule C forms).
What are the Community Property States?
All states have laws related to division of property, most commonly in a divorce; each state is either a "community property" or "equitable distribution" state. In community property states, all property acquired during the marriage is divided equally. Only nine states have community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Check Your State Laws
Before you rush out and attempt to file your taxes as a QJV, be sure to check state laws, which might not allow you to make this election.
Disclaimer: The information in this article and on this GuideSite are for general information purposes only; the information is not intended to be tax or legal advice. Each situation is specific; consult your CPA or attorney to discuss your specific business questions.