It sounds like you do not have a sale at all. You are just transferring inventory from your sole proprietorship to your LLC, which does not need to be reported.
If you and your wife are the only members of the LLC, you can continue to file as sole proprietors, unless you are filing Partnership or Corporate returns for the LLC.
If you already deducted the cost of unused inventory on your Schedule C, the LLC can't deduct that cost again.
Inventory is never depreciated, the cost of inventory is only deducted when the inventory is sold.
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