A married couple co-owns a bakery. There are no other owners, both spouses materially participate, and they file a joint return. They have not created any kind of a state law entity. They want to avoid filing as a partnership. Which option is available to them?

AThey must file as a partnership, because they have two owners.

BThey can elect to be taxed as a qualified joint venture. Each spouse files a Schedule C and their own Schedule SE.

CThey can elect a qualified joint venture only if they first form an LLC.

DThey can elect to file as an S corporation without creating a state entity.