How to structure a partnership

[Kyle Grimm]

Hello BP! 

I am seeking advice on the correct way to structure this current deal I have under contract with a friend of mine. It's a 3 unit residential building located 25 mins from me. Laying small details aside, the property is currently under contract with my LLC (Oakridge Property Group LLC) and Clayton S (a good family friend). My LLC is made up of myself 60% owner and my dad 40% owner.

Initially, we did not plan on forming another LLC for this specific property but were going to keep it in Oakridge Property Group and Clayton's name. Our banker brought to our attention this could cause confusion with taxes at the end of the year and things like who would the rent checks be made out to.

What would be the correct way to set this deal up with the appropriate ownership if my dad and I want to keep our 60/40 ownership of Oakridge Property group and want to be 50% owner on this new property with Clayton? I appreciate any thoughts and advice! Happy Investing!