Spouse hiring spouse's LLC to rehab a house

[Jon Patzlsberger]

I'm the sole employee in my handyman LLC. My wife wants to invest in a house to hold or flip. She is not part owner of my LLC. Can she legally hire me and my LLC to do the rehab work? I would like to buy the materials etc. through my LLC but don't know if that is legal or not? The house would be in her name.

[Brandon Hall]

@Chris Mason the reason the spouse was left off is because of the pass through treatment of LLCs/sole proprietorships and the combination of being married.

One way to get the treatment the OP is seeking is to set up separate C-Corps that provide services to each other. This is something I use with my clients. It's an excellent way to pass income to lower tax brackets. C-Corps are separately taxable. No pass through.