I have two different applications using the same aspnetdb database - a WPF application which is in premises and an online silverlight application. I need to manage users in the aspnetdb database(create/edit/assign roles etc).
Whether I should create a datamodel for aspnetdb and use the linq query or whether I should use the AspNetSqlMembershipProvider for managing the users?
Make a WCF service that exposes Login methods. You'll need one anyway for your Silverlight app I presume.
Then you can "add service reference" to your new WCF service in both projects and login through it.