As to your filing, TurboTax will walk you through the process of entering information on status as well as information on each of you as individuals, and you will indicate that you are filing jointly. Be thorough and accurate with birth dates, Soc Sec numbers, and addresses.
As to your wife's business venture, if it is a basic small business (sole proprietorship) that she is running from home, she should keep those finances running through a separate bank account from which she can generate a profit and loss statement at the end of the year (basically detailing Income and Expenses netting to a profit or a loss). In a simple situation like this, she would report those numbers on Federal Form Schedule C and the bottom line income or loss would be then carried to your Federal Form 1040 for taxation along with your other income such as W-2 and interest, etc. Many small businesses are set up and run in this way and the requirements are very basic and informal. You will be able to use TurboTax Deluxe, TurboTax Premier, or TurboTax Home and Business to file your taxes.
On the other hand, if and when the business grows and becomes more significant, it could be set up as an LLC, S Corporation, or C Corporation using your State's guidelines. She should seek help from a CPA or other professional to help in this area. Basically, an S Corporation, and some of the LLC categories become entities that file their own tax returns where the bottom line earnings are reported to her on a Form K-1. In other words, they report their Income, Expenses, Earnings on a separate tax return that pays no taxes itself, but which "passes through" those earnings to you via a Form K-1, which gets entered on Federal Form Schedule E, and gets carried to your Federal Form 1040 for taxation. For this type business, I would recommend using the TurboTax Business product, which is harder to find and not the same as TurboTax Home an Business.
If the company is set up as a C Corporation, which is very unlikely for a small business, it would file its own tax return and also pay taxes separately from your individual tax return. She could receive earnings from that C Corporation by way of a W-2 paying her a salary, or by way of dividend payments as a shareholder. She is likely not there yet and you need not worry about that. Again, in this situation, TurboTax Business is the product to use.
