Facts: Husband is legal owner of SMLLC. This SMLLC was converted to a California corporation in 2022 and he remained the owner. But the Spouse does all the work (consulting) and manages all the operations, legal, etc. We intend to elect S Corporation status in 2023. I don't think he can be the legal owner while she does the work. As an S, wouldn't wages be required to be paid to him, not her?

IANAL but this entity and ownership doesn't seem proper and might even jeopardize S election.