Author Topic: Spouse's LLC income considered?  (Read 836 times)

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461nj

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Spouse's LLC income considered?
« on: June 10, 2016 03:40:35 PM »
State: NJ

I'm looking at Chapter 7. 

Wife has LLC (she's the single owner) that was formed early this year - so doesn't exist in last year's tax returns.

Her LLC bank account is active - weekly consulting checks being deposited. She's NOT an employee, LLC has no employees. And since end of the year is not here yet, we don't know if it's going to generate income or not.

We both have jobs and our combined household income (without LLC involved) is below the means test.

If I'm filing Chapter 7, how does her LLC factor in?

Thanks



CleaningUp

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Re: Spouse's LLC income considered?
« Reply #1 on: June 10, 2016 04:38:58 PM »
You are filing Chapter 7 bankruptcy, not your wife.

461nj

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Re: Spouse's LLC income considered?
« Reply #2 on: June 10, 2016 04:46:13 PM »
Correct. What confused me was, since we're married and living together, all income has to be considered for means test. If she has an LLC that IS making money, how can you leave it out of the income?

fisthardcheese

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Re: Spouse's LLC income considered?
« Reply #3 on: June 10, 2016 05:10:27 PM »
Correct. What confused me was, since we're married and living together, all income has to be considered for means test. If she has an LLC that IS making money, how can you leave it out of the income?

Your first post said that you don't know if it will generate income or not.  I take that to mean there is no profit being made on the LLC yet?  I'm not sure that anything not considered a profit would need to be used as income on the means test.  Do you have an attorney assisting you with this?
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461nj

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Re: Spouse's LLC income considered?
« Reply #4 on: June 10, 2016 05:15:30 PM »
Your first post said that you don't know if it will generate income or not.  I take that to mean there is no profit being made on the LLC yet?  I'm not sure that anything not considered a profit would need to be used as income on the means test.  Do you have an attorney assisting you with this?

Business currently has regular check deposits; weekly, bi-weekly. They're coming in but very little is going out right now. She's considering a company vehicle and maybe a shared office space. My assumption was for the end of the year - tax return purposes.

 

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