Thanks for all the insights and replies.
If I'm understanding this right, in a community property state like CA, any income generated is equally divided between husband and wife and they have to report their share and pay all taxes including self employment taxes. I guess, my plan to save on self employment taxes on my wife's share is not possible with just LLC.
Do you think leaving the business as S Corp would be the best? I can draw salary just for myself as wife is not involved and rest we can take as distribution.
