Posted by William L. Exeter on August 20, 2003 at 10:36:13:
Mary, there is a recent Private Letter Ruling issued by the service that specifically states that a two member LLC, where the two members are Husband and Wife and are located in a community property state, will be considered a disregarded entity. It does not address the issue of a non-community property state and many of the tax advisors that we work with caution that it will probably not be considered a disregarded entity in a non-community property state. I would be more than happy to provide you with a copy of the PLR if you are interested, just email your fax number to me.
Diversified Exchange Corporation