If my wife and I own a LLC (no employees) in IL and purchase our health ins through that entity. Do I account for that on form 1065 (ord bus exp) or 1040?

If the health insurance is paid by the LLC it belongs on the LLC return.  

That is where it was paid and that is where the deduction belongs. 

TurboTax software (as I go through it) says "A Partnership can deduct the cost of medical insurance premiums paid for a partner as a guaranteed payment.  The Partner will report their guaranteed payments as income.  The schedule K-1 they'll receive from the partnership will sepeately state the amount of medical insurance premiums paid, so that partner can deduct the medical insurance on their personal return."

So based on this, do I pull that amount out as a business expense, note that amount as guaranteed payment, and then also deduct on my personal return as well.  or is it (Since we have no employees), we account for it as Guaranteed payment (and not a general expense), and then account for that expense on the personal 1040.

Note it as guaranteed payment on the LLC and then on the Personal return, it is a Self-employed medical deduction.  See this link:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/5460150">https://ttlc.intuit.com/replies/5460150</a>