50/50 Partnership: Tax & Structures Questions

[Scott Doyen]

My partner & I JUST closed on our first Real Estate Investment Property! Actually on Dec. 31, 2019! YAY! 

Both of our names are on the loan. We have and will continue splitting everything down the line 50 50: Down Payment, Profits, losses, etc. So far in terms of structure, everything in our partnership has been verbal- no LLC. We are a drafting partnership agreement currently & most likely with professional help. Also, we will be opening up a business checking account within the next few days for the property (I know I know this all should have been done BEFORE closing the property).

At this time, we do not have nor want to establish an LLC, but would like to continue as a partnership & try and run this like a business w/business banking account & partnership agreement. For liability protection, we will each carry umbrella insurance in addition to our homeowner's insurance.

When talking to our Property Manager, she informed me that the 1099 Tax form will only have one of our SSNs on it, etc. 

This leads me to ask:

1) What Tax Forms & Implications should we be aware of? It doesn't sound right that only one of our names' will be on the 1099 & we want to make sure we are doing this correctly. 

2) Is the partnership agreement & business checking account good first steps? 

3) Any other advice? All advice is very helpful, thanks BP!

Best,

Scott