If you open an LLC then how it is taxed depends on how many members there are ... a single member LLC is either a Sch C or Sch E since it is a disregarded entity.
A multi member LLC is taxed as a partnership.
However if you live in a community property state and you and your wife are the only members of the LLC, you have the option to treat the LLC as a qualified joint venture instead of as a partnership. In that case you would each file a Schedule C reporting half of the LLC's income, assuming that you each own 50% of the LLC. Community property states are AZ, CA, ID, LA, NM, NV, TX, WA, and WI.
Now both single member & multi member LLC can elect to be taxed as an S-corp if they make a timely election.
