LLC, S Corp or C Corp, for a large multifamily with two investors in different states?

[Bill D.]

What would be the best way to minimize taxes and keep things simple for two investors, one in Ohio and one in Chicago. The property is in Chicago. 50 units, profits should exceed depreciation in a year or two. One is trying to hide income from the X wife. The other pays AMT and doesn't even get the opportunity to enjoy tax deductions because of the AMT. How should we set up this venture from a tax and business standpoint?