Adding Spouse to LLC in VA and Solo 401K

[Danny C.]

Hi,

I have a single member (disregarded entity) LLC in Virginia on my name. I have a EIN for that LLC and bank account too. I am full time W2 employee and I haven't done any business (profit or less) in that LLC so far i.e. no schedule C so far. But I am expecting to get some income next year in LLC. On the other hand, this year my wife has been working on 1099 only. She is going to have around 60K of income on 1099 by the end of this year.

We have two goals (a) For this year i.e. 2016, we want to open a solo 401k where my wife can put maximum retirement savings whatever maximum she can. (b) For long term, i.e starting 2017, we want to have a multi member LLC or partnership LLC, or something like that. As we are expecting much more income on 1099 from my wife as well as from my side in 2017, so we want to put 25% of profit share other than individual 18k share in our solo 401K moving forward from 2017.

We are planning to open Solo 401K from eTrade and they require EIN. We have two options:

1. My wife can get EIN and open a solo 401K and put 18K plus 20% of net income and done with 2016. Don't worry about joint LLC this year.

2. My wife can become member of my LLC and we should come up with Multi Member LLC or Partnership LLC or whatever is best - which I don't know at this time. This will be permanent/long-term structure and then we don't have to change anything later. Else she might need to move her solo 401K money later.

Based upon above situation, I have few questions:

Q1. Virginia is non community property state, so what I need to do to add my wife as a partner or member to the existing LLC I have in Virginia? And which option is better - Member or Partner? We both will be working almost equally from 2017 in the LLC.

Q2. This is kind of extensio to Q1. Do I need to get new EIN for my existing LLC in case I add my wife as member or partner? I am not clear about it.

Q3. Even if I add my wife to LLC this year (by having new EIN, changing bank account information etc.), can her income which she has made till Sep end be bought in to LLC and then she can put that in solo 401K ?

Q4. Is it better to keep separate entities (my wife as sole prop. and myself as sole prop. using LLC) or have a multi member LLC ? I am leaning towards multi member LLC or partnership as it protects personal assets.

I would appreciate any help or guidance in this regard.

Thanks

DN