SE Tax issues of adding spouse to LLC?

[Chris Coleman]

What are the SE Tax implications of adding my spouse to my LLC? Here's my scenario: Right now, all of our income comes from my employment salary, and from investments (rental income from RE and Stocks). My income is high enough that all of my SE taxes are paid from it for the year. My wife currently pays no SE taxes, as she is not employed and has no personal income, i.e., we are a single-income family. We file a joint return. Our RE rental income (and other side ventures) are managed in an LLC, which has been only me (no employees). If my wife starts to work with me in the LLC, is there a preferred setup that would lessen the tax implications of her having to pay SE tax? Should we make her a Member? An employee? None of the above? Does it even matter? Bottom line, I don't want to incur a bunch of additional SE taxes on our joint return simply because my wife started working in our own LLC... Thanks.

[Cameron Skinner]

Married couples can file a multi member LLC as a "disregarded entity" on your personal return as long as long it is wholly owned by both of you, you file a joined return, and you live in a community property state.