What are the pros and cons to establishing a business as "Husband and Wife"?

Lets put it a different way. The purpose of establishing a corporate entity for your business (Inc, LLC, etc.) is to protect personal assets from business failure. So starting a business as husband and wife provides no such protection.

I understand the reasoning for LLC VS Sole Proprietor, but I would like to know the tax obligation differences between Sole Proprietor VS Husband and wife. My kids are running a small business that do not require the hiring of any employees (at this point). From what I can read, with filing business as Husband and wife, FUTA taxes are not required. If one spouse works for the other, than FUTA taxes are required. Does this sound accurate?

This is true, if there are no employees, no FUTA. But there are multiple ways of doing that.. If they file their taxes jointly, then all they need is to complete a Schedule C.

Thank You. I will need to seek an accountant to determine my best option.