Depends on the type of business. If it is a part time wedding photography for example, it may be easier to run it as a sole prop, as creating a separate entity has costs involved. But if it is a serious business, I prefer keeping it seperate, with a dedicated bank account and running in a CC. You will be taxed at 28% which is lower than the 40% max threshold for individuals, and that is after structuring a salary for yourself and your wife. Yes, you will have to keep books and have financials but any good business should have that. If you are not sure that it will work, maybe try as a sole prop, but if you have a business plan why not create a seperate business? Especially if there are legal and monetary risks involved.
