I want to know what is better for me and my wife.

Filing as an LLC partnership, where the business's income or loss passes through to your personal returns via K-1s, is a common and entirely permissible method for a multi-owner LLC like yours. This avoids corporate-level taxation, meaning the business itself doesn't pay income tax. Whether there's a "better" option primarily depends on your business's profitability and your overall tax situation. For many growing LLCs, especially those with significant net income, electing to be taxed as an S-corporation can offer potential tax savings. With an S-corp election, owners can take a reasonable salary (subject to payroll taxes), but remaining profits can be distributed as dividends, which are not subject to self-employment tax. This can lead to significant savings compared to a partnership, where all distributive share of income is generally subject to self-employment tax. However, an S-corp also involves more administrative complexity, including running payroll and additional tax filings. The optimal structure is highly individual and depends on factors like your expected income, expenses, and long-term goals. It's advisable to review your specific circumstances to determine which election provides the most beneficial tax outcome for your business.