Need advise on Single Project Joint Venture

[Robert Sorrels]

I won my first REI property at auction, and will close in a few weeks. The property is in my hometown in Oregon and I live in Southern Ca. The Property needs some extensive work done including foundation and roof. I used savings and a heloc to purchase. Ive identified a friend from Junior High/ High School who runs his own construction company in town, and has plenty of experience to complete this project. I have about 40,000 (more) to put into it. and he has about the same. We have estimated the rehab at around 75k.

I borrowed a Single Project Joint Venture contract and reworded some things to fit our 50/50 partnership. I will have final say for design and final net profit split. Any Interest we pay on loans we take out will be paid back before split

What else should I have set in place? I am concerned with the tax implications and want to make sure it is fair as to what we recieve at the end. Do I just 1099 him for his share of the profit? what is a 1099 anyway, and how do I do that? Can we shield the profit by opening a C Corp with the profit so we can continue to flip? 1031 exchange?

Thanks in advance for any thoughts..

Rob