Structuring a partnership

[Jacob Pereira]

Hi BP,

I've always been a buy-and-hold investor and have never had partnerships before, but recently a colleague of mine presented me with a partnership offer on a flip he's considering that seems worth going for. I'd like to get some advice from here on how to structure our partnership to be legal and as tax-advantaged as possible. Some details:

All costs and labor will be split 50-50

He will take out the loan, then he will quitclaim it into an LLC which we will both own evenly

Upon sale of the property we will liquidate the LLC and split all profits evenly

Is it that simple? What are some things I'm missing? Any additional advice before I go on this endeavour? 

Thanks for your help.