it up as a single member LLC or have 2 members.

First, just because you're paying yourself profits of a LLC, this alone doesn't exempt you from social security or medicare taxes. You pay self-employment taxes on this income generally, which is about double the normal payroll tax (unless you elect subchapter S status, in which case your profits in excess of a reasonable wage are exempt).

If you have one member (owner), then you don't file a tax return for the LLC (unless you elect subchapter S). Instead you just file a schedule C on your regular personal tax return. If you have more than one member (owner), then you have to file a separate partnership tax return, then report the income on your personal tax return.

Whether you and your wife constitute one member or two members depends on how you title your membership. I think, but you should check with an accountant, that if you title your ownership as "Bill and Susan Smith, husband and wife" owning 100% of the LLC, you can still be considered a single-member LLC and get away without filing a separate partnership return. If you give Bill Smith 50% and Susan Smith 50%, you probably will get classified as a partnership and have to file a separate partnership return. Again, double check this with an accountant. It's been years since I've had to deal with this specific issue and my memory on it is fuzzy.