Hello apcsbz
I completely understand your frustration. If you read up on this article https://www.irs.gov/pub/irs-pdf/p519.pdf
it clearly states that you will need to disclose the world wide income, even if you are on a H4. Since you are MFJ for all tax purposes, your income is considered taxable income. Even being a H4 you still have to disclose the interest/dividend income from foreign sources. So I would say you will need to include your business income in your tax return and you get to take the foreign tax credit for the foreign taxes you paid in the foreign country.
As far as entity formation, please refer to a Tax Attorney or a Financial planner to get advise on getting a H4EAD.
Thank you
