That's not the issue the previous commenters were discussing. The issue is that you can't have a Husband
Wife Qualified Joint Venture and have it be an LLC. She can be your employee, but she can't be your partner. If it is a partnership, you will have to file a Partnership return.
Definition
of a Qualified Joint Venture
A qualified
joint venture is a joint venture that conducts a trade or business where (1)
the only members of the joint venture are a married couple who file a joint
return, (2) both spouses materially participate in the trade or business, and
(3) both spouses elect not to be treated as a partnership. A qualified joint
venture, for purposes of this provision, includes only businesses that are
owned and operated by spouses as co-owners, and not in the name of a state law
entity (including a limited partnership or limited liability company) (See below). Note also that mere joint
ownership of property that is not a trade or business does not qualify for the
election. The spouses must share the items of income, gain, loss, deduction,
and credit in accordance with each spouse's interest in the business. The
meaning of “material participation” is the same as under the passive activity
loss rules in section 469(h) and the corresponding regulations (see Publication 925, Passive Activity and At-Risk Rules). Note that, except as provided in
section 469(c)(7), rental real estate income or loss generally is passive under
section 469, even if the material participation rules are satisfied, and filing
as a qualified joint venture will not alter the character of passive income or
loss.
From
<https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...>
