My apologies for your not being able to see the answer here.
It looks like some changed the category to "Business Law," while I was typing my answer.
This SHOULD, however, as your question ahows be in the tax area.
Again, having the k-1 (a tax document) provided to your husband DOES carry some risk (even though the statement you provided says "corporation).
Because the income will flow to the joint return either way, and changing to a single-member LLC wil have no tax ramification, I would make that change.
Again, here is the form you'll need:
As I mentioned above, just check the box that says there' a single manager and in section 3, part C (where it says "AMENDMENT TO TEXT OF THE ARTICLES OF ORGANIZATION:"), say, amend articles to remove _________ as member.
Then, you'll just report the LLC's taxinformation on a Schedule C and that will flow to line 12 (business income or loss) on your joint 1040.
Most important, the LLC income will be considered your income, just as if you ahe a w-2 from a job and included it on your joint return.