Question about LLLP, will IRS flag me....

[Mike Nelson]

Ok, so relatively new to the realm, but am taking on the education of my life with the help of this site. So what I am looking at is I have a colleague who is a Realtor. We talked about forming a LLLP in which she would be the General Partner and I would remain the Limited Partner. I plan on providing 100% of the POF for wholesale deals. Now if I have the business documented as 99% ownership as a limited partner and my colleague as the 1% General Partner, does this really mean she will receive 1% of the gross proceeds as ordinary income subjective to SE tax, and the remaining 99% passed through to me as JUST Ordinary income?? Seems like the IRS would frown on such a deal. Keep in mind she will be doing all the work..... thoughts?