There have not been any changes in the law regarding sole proprietorships that we know of, but we note that this area of law is somewhat unclear because the federal law differs from Illinois law. For purposes of account titling and documentation, the federal IRS rule — allowing for married couples sole proprietorships — is likely the most relevant.

• Federal law: Under the Internal Revenue Code, a married couple who run a business together may file their joint tax return as a sole proprietorship if they fulfill all of the requirements to be considered a “qualified joint venture.” IRC Section 761(f)Election for Married Couples Unincorporated BusinessesFAQ on married couples sole proprietorships (December 6, 2017).

• State law: Under Illinois law, any two or more individuals who run an unincorporated business together (that is, who “carry on as co-owners a business for profit”) are automatically considered a partnership, even without a written agreement or filing with the Secretary of State, and there is no exception to this rule for spouses. 805 ILCS 206/202(a). (However, note that the Illinois Department of Revenue’s business registration form (REG-1) does allow for a married couple business to register as a sole proprietorship for tax purposes.)