partners and taxes without LLC

[Brian Campbell]

I've read every thread in here on LLC's vs umbrella liability insurance. My lawyer (a friend) will set up my LLC, but it will cost over 1K to do so so I am looking for other options.

My longterm girlfriend (12 yrs) and I are going to partner with her brother and sister in law in buying rentals. My girlfriend is buying the first house and they will buy the second. I am worried about the tax implications not being fairly distributed without an LLC.

Can the profits and losses be distributed somehow without a partnership. We might be buying a house very soon (have an offer in) and I am still not sure how to approach this problem. I think eventually we will set up a LLC, but for now how do I solve the tax problem? How would you do this?