Do I need an LLC for a coworker to Invest in my Next Rehab Deal?

[Caleb Mills]

I recently started rehabbing properties in the Dallas Fort Worth area. I am listing my first rehabbed flip on the MLS this week!

After sharing this rehab flip story with a co-worker, he mentioned that he was very interested in investing in my next flip. I am currently unincorporated and need to understand the ramifications of this when it comes to bringing equity partners on the deal.

What's required from a legal perspective to protect him as an equity investor in the deal? What are the upsides to having an LLC vs. staying unincorporated at this point?

Any advice to consider while discussing and negotiating the investor funding deal would be much appreciated! Thanks!