Husband and wife LLC. Single member or not?

[Scott Johnson]

In setting up my LLC in North Carolina (a community property state) is it preferable, for tax reasons, to set it up with only one of us as a member or both? My CPA says it is better not to have things set up as a partnership for tax reasons. In my own investigations, I have found that if the LLC is a "qualified entity," and the LLC, and the husband and wife as community property owners, treat the LLC as a disregarded entity for federal tax purposes, the Internal Revenue Service will accept the position that the entity is a disregarded entity for federal tax purposes by filing Form 8832. In that case, the husband and wife would report the income and expenses of the LLC on Schedule C of their Form 1040. Is this the best way to handle this?