Need advice. My wife is starting a small business

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Need advice. My wife is starting a small business

My wife, who is a stay at home mom, is starting a small home based business.
We are married and file jointly.
She has no other earned income and I am on a W2.
We have no state income tax.
We are in the highest marginal income tax bracket based on my W2 earnings.
She anticipates to earn between 15k to 20k per year after expenses from her small business. We don't have any experience with running a business. I have done some readings regarding starting a biz, tax filing etc. I think she will run the business as a Sole Proprietorship. No plan to hire any employees or issue W2s. She will work out of her home office.
1. Is it necessary to register her small business?
2. Is it necessary to get an EIN? I did some research on the IRS website. The answer appears to be no. Is there any advantage of getting an EIN?
3. I know she will have to pay her self-employment tax quarterly. In order to minimize her income tax, I think she will open a solo-401k and put all her earnings after expenses into her solo-401k. Does this sounds like a good plan? Given that the maximal employee contribution is 18k a year, she will not have to pay any income tax. Is it correct?
4. We use TDA and Fidelity. Any comment on their solo 401k plans?
5. Is claiming a home office deduction really a red flag for an IRS audit? I feel that her deduction will be very legit but not sure it's worth the trouble of an audit.

Please help

I didn't find the right solution from the internet.

No links are allowed. Administration

Thank you
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