No no no stop.
More information is needed.
"it is considered a single-member LLC" makes no sense. Either you went to the secretary of state and filed paperwork to register as a single member LLC, or you did not. If you did not specifically register as an LLC, you are not an LLC. You are an unincorporated/simple sole proprietorship. If you did register as an LLC, then the membership is determined by what you put on the papers. If you included your wife then it is a two member LLC; if you only listed yourself it is a single member LLC. Nothing is automatic or assumed, it depends on what paperwork you actually filed with the state government.
If you registered as a single member LLC, then:
All the business is reported on your schedule C ONLY. If your spouse materially participates, you can either:
1. pay her a wage that reflects her participation and issue her a W-2, or
2. make her a subcontractor, pay her for her participation, and issue her a 1099-NEC. In this case, you report the all the expenses of the LLC on your schedule C, and she will have a separate schedule C and will only report the expenses that she particularly incurred while performing her subcontracting duties. Her business (as a subcontractor) is completely separate from your business.
The payment you make to her as wages or a subcontractor is, of course, one of your deductible business expenses.
If you are not registered as an LLC or S-corporation, then you have these options:
1. You report 100% of the business and you pay her a wage and issue her a W-2 as described above, or
2. You report 100% of the business and make her a subcontractor and issue her a 1099-NEC as described above, or
3. The two of you file as a qualified joint venture. Each spouse files a schedule C in their own name to report their share of the business income and expenses. It might be 50/50, or it might be something else, depending on how the work load and duties is actually divided. (Note that if you are in a community property state, you must divide the income and expenses 50/50 even if that is not how the work is divided.)
If you registered as a 2-member LLC with your spouse as the other member, then:
1. If you live in a community property state, you file 2 schedule Cs each listing half the income and expenses, even if the work is divided unevenly.
2. If you do not live in a community property state, you file a form 1065 partnership tax return for the partnership. The 1065 lists all the partnership income and expenses. As part of filing the 1065, each partner gets a form K-1, listing their share of income and expenses, and the K-1 is added to the person's regular tax return along with any other income and expenses. The income and expenses on the K-1 can be divided by percentage of effort, it does not have to be 50/50. Form 1065 for a partnership was due March 15, not April 15, unless you got an extension (and the extension for form 1065 is different from the extension for form 1040). The late fee for filing a 1065 late is $195 per month per partner.
