Your questions are all over the board as you are talking about Sch C, sole proprietorship and then a multi-member LLC. This response is clarifying what @gloriah5200 noted since it appears your question is geared to when you become a multi-member LLC.
What @gloriah5200 is indicating is that "yes" you can do that, but you do not report those earnings on a 1099.
Once you become a multi-member LLC, you will report those earnings as what is called a "guaranteed payment". These are earnings of a member that are paid to that member regardless of the profitability of the LLC.
These amounts are a separately stated item on the form 1065 and also specifically allocated to that member (your wife in this case).
Once you become a multi-member LLC and file a form 1065, you will no longer be filing the Schedule C. The earnings from the K-1 will be reported on Schedule E.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
