How do I structure a Joint venture?

[Jeff Caravalho]

My dad & I are considering entering a joint venture with a good friend of mine who is an experienced contractor. We would like to flip to earn capital for future buy and holds. My questions are: 1. Should we form some type of entitiy (LLC) or just do a joint venture since this is our first flip. 2. What percentages should we use: 33.3% each? Should my dad & I get a higher percentage since we are putting up HELOC money. I plan on spending 15-25 hours a week on the flip myself (I've designed & built a house for my parents & maintain my parents rental (their old house), so I'm pretty handy). Should we just pay my contractor friend his rate and go 50/50 with my dad? I've heard the saying " A partnership is the hardest ship to sail & I don't want to go down in high seas with my dad & a good buddy. Thx for your input.