My guess is that the LLC is set up as an S Corp. Under the S Corp provisions as prescribed by the IRS you are required to pay yourself (or just your husband if he is the only one working for your business at the moment) a "reasonable wage". Although IRS does not give clear guidelines as to what is considered a "reasonable wage", one of the accepted practices is to keep track of the number of hours worked and pay yourself at the going rate for that particular type of job. Since you must pay yourselves wages, this means that you must also pay all applicable payroll taxes, and you will receive a W2 at the end of the year. If you want to revert this back to a Sole Proprietor status, you will be relieved of having to pay yourselves a salary, thus eliminating payroll taxes. Under the sole proprietorship rules, if you both work in the business, then as explained above, you would be eligible for the 110-28 rule, and you may each file as a sole proprietor claiming your share of the income, and you will each need to file Form SE to pay your share of the social security tax.
There are some other considerations that should be looked at here though, specifically liability issues. Under a sole proprietorship, there is no liability protection as there is under an S Corp.
I'm linking you to a web site that gives you a pretty good comparison of the different types of entities available, and some of the pros and cons to each type.
I strongly suggest that you speak with an Enrolled Agent, CPA, or professional tax preparer re: which entity would best suit your needs, especially if you decide to change from an S Corp to a Sole Proprietor as there are forms and steps you must take to close the S Corp if you decide to change.
http://www.themoneyalert.com/Corp-Entity-Table.html
I hope this helps. I will be away from my computer for the next few days, although I will try to check back late at night when I get home.
Master Tax Preparer
Enrolled Agent with 20 Years Experience specializing Individual and Small Businesses