No such legal entity. Your wife has a community property interest in business anyway. You can add her to bank accounts, credit cards, etc. without a formal ownership. You can also form a corporation or LLC to protect personal assets from liability and give you some tax advantages and more credit. She can own half of corp or LLC formally.
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Actually, in California a husband and wife can be classified as a sole proprietorship for state tax purposes, although registered domestic partners must be classified as a partnership. Similarly, the IRS (Revenue Procedure 2002-69) officially states that you can treat your husband and wife business as a sole proprietorship for federal tax purposes.
As a result, you can report all your business income and expenses on Schedule C of your Form 1040, rather than a complicated 1065 with Schedule K-1s. There are other tax advantages, so consult your tax advisor.
You don't need to file legal forms to obtain a sole proprietorship, other than a locally required business license or a fictitious name, if you do not use your real names.
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