Ramifications of investing with a partner?

[Dave Versch]

I'm considering investing with a partner.  

Here's the plan:

Since we each own our own single proprietor LLC (let's call them LLCDave and LLCJoe), we are planning on creating a new LLC (123 Main LLC) for the purchase of this property, in which LLCDave and LLCJoe will each hold a 50% stake.

At some time in the near future (assume this is a flip) we will sell this property and dissolve 123 Main LLC. At that point, net profit will be split between LLCDave and LLCJoe.

Here are my questions:

1) What do we need to have in place prior to making an offer on a property? We don't want to go through the trouble of forming 123 Main LLC, opening up a bank account, etc, if our offer for 123 Main St doesn't get accepted. So how is this usually done?

2) How will 123 Main LLC be taxed, and what tax forms need to be filed for that entity? My own LLC (LLCDave) gets the passthrough treatment since it's a single proprietor LLC, but what about 123 Main St LLC? And who actually does the filing with the IRS (Dave or Joe) if tax time comes around and 123 Main LLC is no longer in existence?

3) My prospective partner and I don't really know each other. We were introduced recently by someone who knew of our mutual interest in real estate investing. Is it common practice in this type of situation to (a) have some sort of partnership agreement, even though our ownership percentages will be listed in the LLC agreement, and to (b) have the bank require both our signatures on any checks written against the account?

Also, feel free to answer any questions I didn't ask, but should have.

Thanks,

Dave