You explicitly mention children as one of these expenses.

The known occupants of the house is 2 adults (Mother & Daughter) and 2 children (Daughter's children)  Last week, I did a 30 day walk through.  

To illustrate my point further; a junior NCO or officer without children may prefer to live close to base.

The two founders are each paying themselves at least $400,000 a year, and both have children working for the company in management roles.The fact that no venture funds or institutions have bought into their story should be a huge red flag for anyone thinking of putting real money into S2A. 

As to the poster's original question, I don't see much advantage either because, as others have stated, an LLC is basically a "pass-through" entity, so even though you get to take a deduction for your spouse's salary, you have to add that income right back in, if filing jointly, resulting in a wash.However, if you have children under age 18, you can pay them as employees of your LLC.

Afterall, if shelter for her children isn't a priority, what would be?

For example, you cannot lend IRA funds to any disqualified parties: yourself, your spouse, your parents, grandparents, children, grandchildren or any spouses of descendants.

I am president and my children are stockholders.

I had this situation myself once, but the individual was extremely up front with me that he had a jail sentence and that he was paying for his wife and children's apartment.  

If you haven't ever heard of it, it is basically a program which pays to make homes more energy efficient by fixing smaller less expensive things like drafts etc; it is aimed at assisting those with lower incomes and who are more susceptible to changes in cold/heat (elderly or children).