Starting out, out of state, with partner

[Barret Davidson]

Hello all, first post here! I live in McKinney Texas and have been looking into real estate investing for awhile. My business has recently taken off but DFW is a hard place to start. My brother is a contractor in Chattanooga Tn and we are looking into flipping and renting houses there. The barrier to entry there is so low and my brother being there with his own contracting businesses is a big help. So I need all the advice! 
we are thinking of being partners, splitting the down payment, paying him to flip or renovate (he will get payed but also will do it slightly cheaper than market value). Should I get an LLC with us as partners? We are considering a flip first and then putting that cash into 1031 for more flips or some rentals.
any advice on out of state, partners, getting started, 1031, Tennessee taxes would be very helpful, thank you all and I'm looking forward to start my journey! 
Also my brother has experience in contracting but not actually owning the real estate.

[E.J. McCaffrey]

I agree with the others that choosing the right business structure for you and your brother is very important. No matter what kind of investments you make, it's essential to keep your personal and business assets separate. This protects you in case of a lawsuit and keeps your finances safe.

If you plan to focus on flipping houses, be aware of the IRS "Dealer Status." This means the IRS sees your real estate as inventory rather than an investment.

Avoiding dealer status is important because it takes away key benefits like 1031 exchanges, installment sales, long-term capital gains tax rates, and depreciation deductions. Plus, real estate dealers must pay self-employment tax on rental income. 

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.