Yes — in most cases, a husband and wife LLC does need an EIN. The answer depends on how the IRS classifies the LLC for tax purposes, which state the LLC is formed in, and whether the couple elects certain tax treatments.
Under Internal Revenue Code Section 761(f), a married couple running a business together is generally treated as a partnership. That default classification triggers the requirement to file Form 1065, issue Schedule K-1s to each spouse, and obtain an EIN. Failing to file Form 1065 on time carries a penalty of $260 per partner, per month — up to 12 months. For a husband-wife partnership, that is $520 per month in penalties alone.
According to IRS statistics, LLCs make up 72.7% of all partnership returns filed in the United States, with over 3.3 million LLC partnership returns filed in tax year 2023. Partnerships with only two partners made up 58.4% of all partnerships — and many of those filers are married couples who formed a two-member LLC together.
Here is what you will learn in this article:
- 📋 When a husband and wife LLC is required to have an EIN — and when it is not
- 💰 How the Qualified Joint Venture election changes your EIN and filing requirements
- 🏠 How community property states create a special path for spousal LLCs
- ⚠️ The most common EIN and tax classification mistakes married couples make
- ✅ Step-by-step instructions for applying for your EIN using Form SS-4
What Is an EIN and Why Does It Matter for Your LLC?
An EIN — or Employer Identification Number — is a unique nine-digit number the IRS assigns to identify your business for tax purposes. Think of it as a Social Security Number for your LLC. The IRS uses it to track your tax filings, payroll obligations, and business activity.
For a husband and wife LLC, the EIN serves as the permanent federal taxpayer identification number for the entity. Once the IRS assigns an EIN to your LLC, that number stays with the entity for its entire existence — even if the LLC changes its name, address, or management structure. Getting it right from the start prevents headaches with banks, state agencies, and the IRS itself.
Beyond taxes, an EIN is needed for several everyday business activities. You will need it to open a business bank account, apply for business licenses, hire employees, build business credit, and file federal and state tax returns. Most banks require an EIN Confirmation Letter (CP 575) or an EIN Verification Letter (147C) before they will open a business account for your LLC. Under the U.S. Patriot Act, banks must comply with Know Your Customer (KYC) laws, and a valid EIN is part of that verification process.
How the IRS Classifies a Husband and Wife LLC
The IRS does not have a special “married couple” category for LLCs. Instead, it uses existing classification rules to determine how your LLC is taxed. The classification depends on the number of members, the state where the LLC is formed, and whether you make specific elections.
A domestic LLC with two or more members defaults to partnership status under IRS Regulation § 301.7701-3(b). This means a husband and wife LLC with both spouses listed as members is automatically a partnership in the eyes of the IRS — unless the couple takes action to change that classification. The IRS does not care that you are married. It looks at the number of owners and the state law structure of the entity.
There are three main paths for a husband and wife LLC:
| Classification | Filing Requirement | EIN Needed? |
|---|---|---|
| Multi-Member LLC (Partnership) | Form 1065 + Schedule K-1s | Yes — required |
| Qualified Joint Venture (QJV) | Two Schedule Cs on Form 1040 | Generally no — unless you have employees or file excise returns |
| Disregarded Entity (Community Property States) | One Schedule C on Form 1040 | Not required by IRS, but often needed for banking and state requirements |
Each path has different EIN implications, tax consequences, and paperwork requirements. The wrong classification can cost a married couple thousands of dollars in penalties and unnecessary tax preparation fees.
Multi-Member LLC: The Default Path
When both spouses are listed as LLC members, the IRS automatically treats the LLC as a partnership. This is the default classification for any domestic LLC with two or more members, and it applies in all 50 states without exception.
As a partnership, the husband and wife LLC must obtain an EIN. The LLC must file Form 1065 (U.S. Return of Partnership Income) each year and issue a Schedule K-1 to each spouse. The spouses then report their K-1 amounts on their personal Form 1040. The partnership itself does not pay income tax — it is an information return. But missing the filing deadline triggers immediate penalties.
What This Means in Practice
Consider Marcus and Lisa, who form an LLC together in North Carolina to run an online consulting business. Both are listed as members on the Articles of Organization. Because North Carolina is not a community property state, their LLC defaults to partnership status. They must get an EIN, file Form 1065, issue K-1s, and report those K-1s on their joint Form 1040.
| Step | Result |
|---|---|
| Both spouses listed as members | LLC is a partnership by default |
| Must file Form 1065 annually | Required by March 15 (or March 17 in 2026) |
| Must issue Schedule K-1 to each spouse | Failure to provide K-1 carries a $330 penalty per form |
| Must obtain an EIN | Required for all partnership returns |
The cost of partnership compliance is real. Tax preparation for a Form 1065 can run $500 to $1,500 or more, depending on the complexity of the return. This is in addition to the cost of preparing the couple’s personal return. Marcus and Lisa cannot avoid this by simply skipping the Form 1065 — even if their partnership had zero income for the year, the filing requirement still exists.
The Qualified Joint Venture Election: A Simpler Path
Congress created the Qualified Joint Venture (QJV) election under the Small Business and Work Opportunity Tax Act of 2007 to give married couples a simpler filing option. Under this election, spouses who co-own and co-operate a business can avoid partnership treatment entirely.
Here is the critical point about EINs: the IRS states that “spouses electing qualified joint venture status are treated as sole proprietors for Federal tax purposes.” Using the rules for sole proprietors, an EIN is not required unless the sole proprietorship must file excise, employment, alcohol, tobacco, or firearms returns. If an EIN is required, the filing spouse should complete Form SS-4 and request the EIN as a sole proprietor — not as a partnership.
QJV Requirements
To qualify, the married couple must meet all of these conditions:
- The only members of the joint venture are the married couple
- Both spouses materially participate in the trade or business (as defined under Section 469(h))
- Both spouses elect not to be treated as a partnership
- The spouses file a joint federal income tax return (Form 1040)
- The business is not operated through a state law entity like an LLC
That last requirement is the one that trips up most married couples. The IRS says a QJV includes “only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity” — which includes LLCs. This means that a husband and wife LLC in a non-community property state cannot use the QJV election. The couple would need to dissolve the LLC and operate as an unincorporated business to qualify — which eliminates the liability protection the LLC provides.
The Community Property State Exception
However, there is an important exception. Revenue Procedure 2002-69 allows a husband and wife LLC in a community property state to be treated as a disregarded entity — which then opens the door to QJV treatment. This revenue procedure was created because the IRS recognized that in community property states, ownership by both spouses is a function of state marital property law rather than a deliberate business ownership choice.
The nine community property states are:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
In these states, if the LLC is wholly owned by the married couple as community property, with no other owners for federal tax purposes, and the LLC has not elected corporate classification, the couple can choose to treat the LLC as either a disregarded entity or a partnership. If they choose disregarded entity treatment, the QJV election becomes available.
A change in reporting position — from partnership to disregarded entity or the reverse — is treated by the IRS as a conversion of the entity for federal tax purposes. This means there may be tax consequences to switching, so consult a CPA before making the change.
QJV in Practice: A Real-World Example
Consider Daniel and Priya, who form an LLC in Texas to run a bakery together. Texas is a community property state, so they can elect disregarded entity treatment under Rev. Proc. 2002-69. They then make the QJV election by filing two separate Schedule Cs on their joint Form 1040 — one for each spouse’s share of income and expenses.
| Action | Consequence |
|---|---|
| Form LLC in Texas (community property state) | Eligible for disregarded entity treatment |
| Elect QJV status on Form 1040 | No Form 1065 required |
| Each spouse files separate Schedule C | Both spouses receive Social Security and Medicare credits |
| EIN not required by IRS for QJV | But they get one anyway for their business bank account |
Daniel and Priya save money on tax preparation, avoid the complexity of Form 1065, and both spouses earn Social Security credits on their share of the business income. This is a major advantage — if only one spouse reported on Schedule C, only that spouse would build Social Security benefits. Over a 30-year career, the spouse left off the return could lose tens of thousands of dollars in retirement benefits.
When You Still Need an EIN — Even as a QJV
Even when the IRS does not require an EIN for a qualified joint venture, there are several practical reasons a husband and wife LLC should still get one.
Business bank accounts. Most banks require an EIN before they will open a business bank account for an LLC. Even if the IRS treats your LLC as a disregarded entity, the bank sees it as a separate legal entity that needs its own tax identification number. Some banks will accept a Social Security Number for a single-member LLC, but many prefer or require an EIN regardless. This stems from federal risk management practices and the legal distinction between the LLC and its owner.
Hiring employees. If your husband and wife LLC hires even one employee, you must have an EIN. The IRS requires it to report and pay employment taxes — including federal income tax withholding, Social Security, Medicare, and federal unemployment tax. If the business already filed Forms 941 under a partnership EIN, the spouse taking over as the QJV employer may be treated as a “successor employer” for wage base limit purposes.
State requirements. Some states require all LLCs to have a federal EIN, regardless of the LLC’s federal tax classification. States like California impose an annual $800 LLC tax regardless of how the IRS treats the entity. Check with your state’s Department of Revenue to confirm your state’s rules.
Building business credit. An EIN allows your LLC to build a credit history separate from your personal credit. Vendors, lenders, and credit bureaus use the EIN to track your business’s financial reputation. Without business credit, you may be personally guaranteeing every business loan or line of credit.
Protecting your SSN. Using an EIN instead of your Social Security Number on business forms, W-9s, and vendor applications reduces the risk of identity theft. Every time you share your SSN with a client or vendor, you increase your exposure. An EIN serves as a shield between your personal identity and your business dealings.
How to Apply for an EIN: Form SS-4 Step by Step
The IRS provides three ways to apply for an EIN: online, by fax, or by mail. The online method is the fastest — you receive your EIN immediately after completing the application. The entire process takes about 10 to 15 minutes.
Before You Apply
Make sure your LLC is already formed with your state before applying for an EIN. You cannot get an EIN for an LLC that does not yet exist as a legal entity. Have the following information ready:
- The LLC’s legal name (as registered with your state, including “LLC” or “Limited Liability Company”)
- The LLC’s physical and mailing address
- The responsible party’s name, SSN or ITIN, and title
- The number of LLC members
- The reason for applying (e.g., started new business, banking purposes)
- The principal business activity and expected number of employees
Key Lines on Form SS-4
Line 7a/7b (Responsible party). This is the individual who controls, manages, or directs the LLC and its funds and assets. For a husband and wife LLC, one spouse should be listed here with their SSN or ITIN.
Line 8a/8b (LLC status and members). Check “Yes” that you are an LLC and enter the number of members. If you are in a community property state and electing QJV treatment, enter “1” because the married couple is treated as one unit. If you are not in a community property state or do not want QJV treatment, enter “2.”
Line 9a (Type of entity). This line determines how the IRS classifies your LLC for tax purposes. If your husband and wife LLC is a partnership, check “Partnership.” If you are in a community property state and treating the LLC as a disregarded entity, check “Other” and write “disregarded entity.” This selection matters because the IRS assigns your EIN based on the entity type you choose here.
Line 10 (Reason for applying). Check the box that matches your reason — such as “Started new business” or “Banking purpose only.” Do not leave this blank or enter N/A. The IRS requires a selection.
Application Methods
| Method | Processing Time | Best For |
|---|---|---|
| Online at IRS.gov | Immediate | U.S.-based applicants with an SSN or ITIN |
| Fax (Form SS-4) | 4 business days | Applicants who cannot use the online tool |
| Mail (Form SS-4) | 4 weeks | Applicants without fax or internet access |
| Phone (international only) | Same day | Applicants outside the U.S. at +1 (267) 941-1099 |
The online application must be completed in one session. The IRS times out the application after 15 minutes of inactivity, and you can only apply for one EIN per responsible party per day. The application is free — beware of third-party websites that charge fees for what the IRS provides at no cost.
Community Property vs. Common Law States: A Critical Difference
Whether your state follows community property or common law rules has a direct impact on your husband and wife LLC’s EIN requirements, tax classification, and filing obligations. This is not a minor technicality — it controls the entire tax structure of your LLC.
In the 41 common law states (plus the District of Columbia), a husband and wife LLC with two members must be treated as a partnership. The couple cannot elect QJV status through their LLC because LLCs are state law entities that do not qualify for the QJV election outside of community property states. The LLC needs an EIN, must file Form 1065, and must issue K-1s.
In the nine community property states, Revenue Procedure 2002-69 gives married couples a choice. They can treat their jointly owned LLC as a disregarded entity (and use the QJV election) or as a partnership. This choice has significant tax and EIN consequences. The key requirements are that the LLC must be wholly owned by husband and wife as community property under state law, no other person is considered an owner, and the LLC has not elected corporate treatment.
Example: Same Couple, Different State
Jordan and Taylor run an identical e-commerce business. The only difference is their state.
| Factor | Jordan & Taylor in Illinois | Jordan & Taylor in California |
|---|---|---|
| State type | Common law | Community property |
| LLC classification | Partnership (mandatory) | Choice: disregarded entity or partnership |
| EIN required? | Yes | Only if they have employees, excise obligations, or need one for banking |
| Tax return | Form 1065 + K-1s | Two Schedule Cs on Form 1040 (if QJV elected) |
| Annual tax prep cost | $800–$1,500+ | $300–$600 |
| Social Security credits | Both spouses receive via K-1 | Both spouses receive via separate Schedule Cs |
This difference can save Jordan and Taylor in California hundreds of dollars per year in tax preparation costs — simply because of their state’s property laws. Over five years, the cumulative savings could exceed $5,000.
Husband and Wife LLC with Rental Property
Rental properties create unique issues for spousal LLCs. Many couples form an LLC to hold rental real estate for asset protection — shielding their personal assets from tenant lawsuits, slip-and-fall claims, and contractor disputes. However, the tax treatment of rental income through an LLC depends on the same state-based classification rules.
In a community property state, a husband and wife LLC holding rental property can elect disregarded entity treatment. The couple reports the rental income and expenses on Schedule E of their Form 1040, and they check the QJV box on Line 2 of Schedule E. This keeps the filing simple and avoids Form 1065 entirely.
In a common law state, the same LLC must file as a partnership. The LLC files Form 1065, issues K-1s, and each spouse reports their share of rental income on their personal return. The LLC must have an EIN. Without one, the partnership return cannot be filed and penalties begin to accumulate.
There is an important nuance for rental property QJVs. Rental real estate income is generally passive income under Section 469, even if the material participation rules are met. The QJV election does not change the passive character of rental income. This means the income remains subject to passive activity loss rules regardless of how you classify the LLC. The exception under Section 469(c)(7) applies only to qualifying real estate professionals who meet specific hour-based tests.
Example: Rental Property Scenario
Angela and Kevin own three rental properties through an LLC in Nevada. Nevada is a community property state, so they elect disregarded entity and QJV status.
| Detail | Treatment |
|---|---|
| Report rental income | Schedule E (Form 1040), check QJV box on Line 2 |
| EIN required by IRS? | No — unless they hire a property manager as a W-2 employee |
| File Form 1065? | No |
| Passive income rules | Still apply — rental income is passive regardless of QJV election |
Angela and Kevin still choose to obtain an EIN because their bank requires one for their LLC bank account. They also use the EIN on 1099 forms they issue to contractors who perform maintenance on their properties.
S Corporation Election for Husband and Wife LLCs
Some married couples choose to have their LLC taxed as an S corporation to save on self-employment taxes. If the LLC elects S corporation status by filing Form 2553, it must have an EIN. There is no exception to this rule.
When electing S corp status, both spouses must consent to the election on Form 2553. In a community property state, even if only one spouse is the listed owner, the other spouse has a community property interest in the LLC and must sign as a “consenting spouse” on Form 2553 — listing 0% ownership and zero shares. This satisfies the tax code requirement that anyone with a community interest in the stock must consent to the S election.
If both spouses do more than minor work for the S corp, they both must be on the payroll and receive reasonable compensation. You cannot add your spouse as a member simply to avoid paying them a fair wage and save on payroll taxes. The IRS can reclassify distributions as wages if it determines the compensation is unreasonably low.
What Happens When You Already Have a Partnership EIN
If your husband and wife LLC has been filing as a partnership and you want to switch to QJV status, there is a specific rule about the EIN. The IRS states that the existing partnership EIN must stay with the partnership. One spouse cannot continue to use that EIN for the qualified joint venture.
If you need a new EIN for the sole proprietorship (which the QJV treats each spouse as), the filing spouse should complete Form SS-4 and request a new EIN as a sole proprietor. The old partnership EIN is reserved for any year in which the business does not meet the QJV requirements.
This also works in reverse. If your QJV no longer meets the requirements — for example, if the spouses stop filing jointly, one spouse stops materially participating, or a third party joins the LLC — the LLC reverts to partnership status. At that point, the old partnership EIN is reactivated for the partnership return.
If the IRS sends a notice requesting Form 1065 for a year in which the QJV election was in effect, the spouses should contact the toll-free number on the notice and explain that they reported income as a qualified joint venture on their jointly filed Form 1040.
When You Need a New EIN
The IRS requires a new EIN when there is a fundamental change to the LLC’s structure or tax identity. For a husband and wife LLC, common triggers include:
- Adding a non-spouse member. If you bring in a third owner, the LLC’s classification changes and a new EIN may be required.
- Changing from single-member to multi-member. If only one spouse owned the LLC and the other spouse is added, the tax classification changes from disregarded entity to partnership. The IRS treats this as a new entity for tax purposes.
- Electing corporate taxation. If the LLC files Form 8832 to be taxed as a corporation or files Form 2553 for S corp status, the entity’s tax identity changes.
- Converting from a corporation to an LLC. A structural conversion generally requires a new EIN.
You do not need a new EIN if you simply change the LLC’s name or address, if the LLC declares bankruptcy, or if there is a change in ownership that does not result in the termination of the partnership.
The Importance of an Operating Agreement
Every husband and wife LLC should have an operating agreement — even though most states do not legally require one. The operating agreement defines ownership stakes, management roles, and profit-sharing arrangements between the spouses.
For married couples, the operating agreement serves several critical purposes. It establishes that the LLC is a separate legal entity from the spouses themselves, which protects against “piercing the corporate veil.” It also outlines decision-making authority, how profits and losses are divided, and what happens if the spouses divorce or one spouse wants to exit the business.
Without an operating agreement, your state’s default LLC laws fill in the blanks — and those defaults may not align with what you and your spouse intend. For example, some states default to equal management authority for all members, which could create deadlocks on important decisions. Others allow a member’s ex-spouse to potentially gain an interest in the LLC through a divorce proceeding, which can give an unintended party authority in business affairs.
Banks, lenders, and business partners will often ask to see your operating agreement. It identifies who has the authority to bind the LLC to contracts, open accounts, and make financial decisions on behalf of the entity. Not having one can delay account openings, loan applications, and vendor agreements.
Mistakes to Avoid
1. Filing as a QJV in a non-community property state. If your LLC is formed in a common law state, you cannot use the QJV election. Filing two Schedule Cs instead of Form 1065 in this situation can trigger IRS penalties and an audit. North Carolina, for example, does not recognize community property, so a husband-wife LLC there must file as a partnership.
2. Using the old partnership EIN for a new QJV. The IRS is clear: the partnership EIN stays with the partnership. If you switch to QJV status and keep using the old EIN, the IRS may reject your filing or send a notice demanding a Form 1065.
3. Failing to get an EIN when required. A multi-member LLC taxed as a partnership must have an EIN. Operating without one means you cannot file Form 1065, open a business bank account, or hire employees. The late filing penalty for Form 1065 is $260 per partner, per month — a husband-wife partnership that files three months late faces a $1,560 penalty.
4. Reporting all income under one spouse’s SSN. When both spouses co-own and co-operate the business but only one spouse reports the income on Schedule C, the other spouse loses Social Security and Medicare credits. Over a career, this can reduce retirement benefits by tens of thousands of dollars.
5. Not updating the EIN when adding a spouse to the LLC. If you started with a single-member LLC and later add your spouse as a member, the LLC’s tax classification changes. You may need to apply for a new EIN and update your state filings, your operating agreement, and your business bank account.
6. Ignoring state-level requirements. Even if the IRS does not require an EIN for your disregarded entity LLC, your state might. States like California impose an annual $800 LLC tax regardless of federal tax classification, and some states require a federal EIN as part of state LLC compliance.
7. Applying for an EIN before forming the LLC. The EIN must match the legal name on your state registration documents. If you apply for an EIN before the LLC is officially formed, the entity type and name may not match — causing confusion with banks, state agencies, and the IRS.
Do’s and Don’ts for Husband and Wife LLCs
Do’s
- ✅ Do determine your state’s property laws before forming your LLC. This single factor controls whether you can use the QJV election through an LLC.
- ✅ Do get an EIN even if the IRS does not require one. Banks, vendors, and state agencies often require it regardless.
- ✅ Do draft an operating agreement that addresses management roles, profit sharing, and what happens in a divorce or business dissolution.
- ✅ Do file separate Schedule Cs if you elect QJV status, so both spouses receive Social Security credits.
- ✅ Do consult a CPA or tax professional before choosing between partnership and QJV treatment. The wrong choice can be expensive to fix.
- ✅ Do keep a copy of your EIN Confirmation Letter (CP 575) in a safe place. You will need it for banking, licensing, and tax filings.
Don’ts
- ❌ Don’t assume your LLC is automatically a QJV because you are married. The election must be affirmatively made on your tax return.
- ❌ Don’t use your personal SSN on business contracts and W-9s when you have an EIN. This exposes you to identity theft risk.
- ❌ Don’t apply for an EIN before your LLC is formed with the state. The EIN must match the legal name on your state registration.
- ❌ Don’t reuse a partnership EIN after switching to QJV status. The IRS requires that EIN to remain with the partnership.
- ❌ Don’t skip Form 1065 if your LLC is classified as a partnership. Even if your partnership had zero income, the filing requirement still applies.
- ❌ Don’t pay a third-party website to obtain your EIN. The IRS application is free on IRS.gov.
Pros and Cons of Each Tax Treatment
Partnership Treatment
Pros:
- Available in all 50 states regardless of property laws
- Allows flexible allocation of income and losses between spouses
- Clear legal framework for ownership and management rights
- Easier to bring in outside investors or non-spouse members later
- Well-established IRS guidance and decades of case law
Cons:
- Requires Form 1065 and Schedule K-1s each year
- Higher tax preparation costs ($800–$1,500+ annually)
- Late filing penalties of $260 per partner, per month (up to 12 months)
- More record-keeping and compliance requirements
- Must have an EIN — no exceptions
QJV Treatment (Community Property States)
Pros:
- No Form 1065 or K-1s required
- Lower tax preparation costs ($300–$600 annually)
- Both spouses receive Social Security and Medicare credits
- Simpler record-keeping and less paperwork
- EIN generally not required by the IRS (though still recommended for practical reasons)
Cons:
- Only available to LLCs in nine community property states
- Both spouses must materially participate in the business
- Cannot have any non-spouse members
- Must file a joint return every year
- Harder to transition to a multi-member or investor-backed structure later
FAQs
Does a husband and wife LLC always need an EIN?
No. If the LLC qualifies as a disregarded entity in a community property state and elects QJV status, the IRS does not require an EIN unless the business has employees or files excise returns.
Can a husband and wife LLC be a single-member LLC?
Yes. In a community property state, the IRS allows a husband and wife to treat their LLC as a single-member disregarded entity under Revenue Procedure 2002-69, even though two people technically own it.
Do I need a new EIN if I add my spouse to my LLC?
Yes. Adding a member changes the LLC from a disregarded entity to a partnership, which the IRS treats as a different taxpayer requiring a new EIN in most cases.
Can a husband and wife LLC elect S corp status?
Yes. The LLC must file Form 2553 with the IRS, and both spouses must consent. The S corp must have an EIN and pay reasonable wages to any spouse performing more than minor work.
Is a QJV the same as a disregarded entity?
No. A QJV treats each spouse as a separate sole proprietor filing separate Schedule Cs. A disregarded entity treats the entire LLC as one sole proprietorship reporting on a single Schedule C.
What happens if we file the wrong return for our husband and wife LLC?
No safe harbor exists. Filing as a QJV when you should file Form 1065 can trigger penalties of $260 per partner per month and potential IRS audit scrutiny.
Does a husband and wife LLC need an operating agreement?
No — not legally in most states. But without one, you risk personal liability, unclear ownership rights, and tax classification disputes that can cost far more than the agreement itself.
Can we form a husband and wife LLC in a state where we do not live?
Yes. But the community property rules of your home state determine whether you qualify for disregarded entity or QJV treatment — not the state where the LLC is formed.
Do both spouses need separate EINs for a QJV?
No. Most QJV spouses do not need individual EINs unless one spouse has employees under their sole proprietorship or must file excise, alcohol, tobacco, or firearms returns.
What penalty do we face for not filing Form 1065?
Yes — there is a penalty. The IRS charges $260 per partner, per month (up to 12 months). For a two-partner husband-wife LLC, a three-month delay results in a $1,560 penalty.