Starting with a Friend (LLC?)

[Melissa Stanley]

I’m hoping to purchase a few properties with a friend/business partner but after meeting with a lawyer am even more confused. Any advice on what setup is easiest and most tax advantaged?

I’m a high income W2 earner getting hosed on taxes (currently own 5 properties). My business partner owns a roofing company but has weak credit and more limited cash flow.

[Basit Siddiqi]

Getting a property with a partner / friend will not help you from getting hosed on taxes.

I wouldn't move forward - You mentioned beng a high income earner so your hourly rate is very high. This arrange that you will have will likely be a headache(major assumption on my part).

First - Do not do business with a friend. 
A partnership requires three things to be successful - Experience, Capital and Time.
It looks like you have the capital and experience but maybe not the time.

I have my doubts about this working if you have a friend who has weak credit and a limited cash flow. That likely means that they are not good with money management which you are likely expecting from him.

To answer your question, if you are doing long-term rentals, the LLC taxed as a partnership is likely the go to route.

Best of luck.