I know we all get into partnerships with people we know, like and trust.

I'm sure I'll pay for all the materials and supplies, but I just did not know what these partnerships typically look like?

In a partnership, I would form a new LLC with both partners havving ownership and incude an operating agreement.

But, the owner of an LLC can make an IRS election to have the LLC taxed as pretty much any other entity instead.So, an LLC can be taxed just like an S-Corp (if the owner would like S-Corp tax benefits), just like a C-Corp (if the owner would like C-Corp tax benefits, just like Partnership (if the owner would like Partnership tax benefits), etc.So, most people interested in having an S-Corp are generally better served by creating an LLC and electing to have it taxed as an S-Corp.

As a limited partnership offering (equity) or mortgage (lender)Here is the quick proforma if your curious.

@Jeff Johnson Cutting someone in on a percentage of gross seems like a partnership deal to me and is honestly something I wouldn't feel comfortable doing if I were doing everything except mowing grass and shoveling snow.

The FDIC said at the time that IMB Management Holdings LP, a limited partnership composed primarily of hedge funds, controlled IMB Holdco LLC.

That's why I think you need to think that partnership through very carefully.I don't think any of this is a concern to a property owner/client for so long as you're managing the property well and the owner is getting their net check each month, on time.

Do you have a partnership horror story?

Joshua Dorkin just started a great topic on Real Estate Investor Partnering Horror Stories:http://www.biggerpockets.com/forums/12/topics/59983-real-estate-investor-partnership-horror-storiesMake sure you read Don Konipol's story which is better than fiction.What about the flip side?