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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I agree with Mr. Fink's answer and would like to add the following:
It is not clear what you want to accomplish. Two individuals who simply decide to work together on a business, sharing profits, create a partnership - please see the first link below.
If you want to establish limited personal liability, the post at the second link below can help you choose between a limited liability company and a corporation.
Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.
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.
Proviso: My response does not constitute legal advice, as I do not know all of the relevant facts of your case, and I do not legally represent you. Although I strive to make sure the information I provide is generally accurate and useful, you should promptly consult an able lawyer who can learn the unique details of your case more completely in a confidential relationship to ensure that the information I provide, and your interpretation of it, is appropriate to your particular situation.