Choosing the right business entity

[Will Short]

This may have been addressed somewhere else, but i haven't been able to find anything that pertains specifically to contractors. I recently got my residential contractors license in Florida and formed an LLC as the only managing member. Since then, I've been approved for a new single family construction loan (currently in underwriting). Since then I decided to bring on a partner (who's happens to be a realtor) to share in the work load, expenses and profits(50/50) and also hopefully use his financials combined with mine to procure another construction loan. I've been told by my bookkeeper that I should 1099 him as a subcontractor to avoid extra taxes and also because partnerships, "tend to never work out." Conversely, we spoke to an attorney who suggested we create a partnership agreement as well as bring him in as an employee and w2 him at the end of the year (they can draw everything up for the low low price of $4000!!) My business is small, just starting out, 2 homes going at a time and don't think I need to bring him on a an employee(nor can i afford to pay the taxes associated with that). I feel that since I'm not dictating the hours he works, where he has to be etc. under the laws of the IRS, he's not technically my employee. In order to get this second loan the bank will want some type documentation showing a link between him and I. My question is, can I add him to my LLC as a managing partner and negate the need make him an employee? I also want him to feel like he has some stake in the company and offer some assurance that I'm not going to yank the rug out from underneath him if we disagree on something in the future. What's the best way to go about this? Any advise is greatly appreciated!!