Corp vs LLC filing Sch C

[AZ-Tax]

If a Husband and Wife own a small incorporated business for which the wife generates all the revenue and the husband earns a W-2 wage from another Corporation (neither husband or wife own), would there be any benefits of having the husband and wife team become an LLC and file a Schedule C especially with the new tax law that went into place in 2007 about a husband and wife business (they reside in community state)? In AZ you dont have pay a fee and file paperwork with the state yearly as an LLC but you do with a Corp.

[Burke]

Well, there are too many details missing to give an accurate answer to this. Is it a C or an S-Corp? What is the nature of the business? Does it own any assets? Changing would involve a forced sale. Does it have any other employees? Do they have a SEPP plan involved?