My wife and I are paid for services rendered to our LLC. Is the 1099-MISC the appropriate reporting form for this income? As the Gen. Partner I will file both of our K-1's and the 1065.
NO ... you do NOT issue partners 1099's ... you will only get/need the K-1 from the form 1065.
First question: Are you and your spouse residents of any of these states?
Assuming that you are not a resident of one of these states, you file the partnership return Form 1065 for the LLC, and that filing should generate Schedules K-1 for each partner with earnings and expenses reflected which are then carried forward to your personal Form 1040.
The IRS is very critical of partnership distributions and as Critter stated, partnership earnings and distributions must be shown and distributed as partnership distributions, with both allocated income and any allocated expenses as appropriate. You are partners not contract employees.