Husband and wife taxed as SP in LLC

[Land Baron]

Thanks mcwagner.

I like the "unpaid volunteer" part.

What about the "manager" one, though.  Can she still be a manager without getting paid or being liable?

Thanks again.

[mcwagner]

yes.  there is no requirement that a manager be compensated.

she would be no more liable than you or any other manager.

[Land Baron]

Thanks for your help mcwagner,

To recap:

I can set-up a single-member LLC, with the income passing through to our joint return.

LLC would be in my name, with me being the managing member.

My wife could also be a member (non-paid) who could contribute in ways like showing homes, help painting, etc.
(I'll learn later what constitutes being a member).

As long as we keep our personal finances and LLC finances separate to maintain the integrity of the "corporate veil", then our personal assets (outside of the LLC) are protected.

I understand that either of us could be held liable if we PERSONALLY do something stupid that would lead to personal injury, tenant property damage, etc.

Seems that this would be the way to go for the personal asset protection and simplified income taxes set-up that we want.

Thanks again.

[mcwagner]

almost.

your wife is not a member (owner) because this would require a partnership return.  she can be a manager, but not a member.

[Land Baron]

Crap!  I meant "manager" not member.  Almost.

Would I have to designate my wife as a "manager" in any of the paperwork and if so, also describe her responsibilities or authority?

What is a "manager" exactly in an LLC?  What can or can't they do?

Thanks.

[TMCG]

a manager in any company is an employee of the company.

you pay them as an employee and everything that accompanies that.

you define the position as the President of the LLC (owner).

you hire employees (managers) and define their duties and responsibilities.

[mcwagner]

An LLC manager does NOT have to be an employee.

Who the managers are, their rights, responsibilities, duties, authority, title (president) are spelled out in the management agreement.  It's a contract between the LLC, its members, and its managers.

members are not automatically managers.  managers do not have to be members.

managers can wield whatever powers are designated to them in the management agreement.

[Land Baron]

OK, Thanks Mark.  I think I finallly have it!

I'd be the Managing Member in the single-member LLC.  The Boss!

My wife will be designated as a non-paid manager, which will allow her to perform certain business-related duties, as outlined in the LLC's Managing Agreement.

As long as I keep our business and personal finances separate, we both have liability protection, as do our personal assets.

Thanks again.  I appreciate the time you've spent explaining everything.