LLC/LLP formation with another investor

[Josh Sohar]

Hello, Please excuse my ignorance in this matter. Trying to figure out the best way to set everything up. This is the situation: My long time friend and now business partner has the financial means to finance our real estate investments. I would be the “boots on the ground” finding and analyzing deals, overseeing the rehab, etc. I was wondering if there was a way to minimize the tax implications on our profits? Would it be best to have our own, separate LLC’s? Form an LLC together? Form an LLP? We do live in different states. I am in Indiana and he is in Florida, the properties would be in Indiana. Thanks in advance. Josh

[Steve Vaughan]

Most likely an LLC in IN.

If flipping, I'd elect s-corp taxation to minimize the active and self-employment taxes.  That's just a job.

If holding, my LLC would be taxed as a partnership.

Broad stroke generalizations from a laymen. Seek professional advice, of course, Josh.