But then again...that is a partnership that you will want to really do your due diligence on before signing the contract!

This entity is good for the partnership because an operating agreement is easy to draft from your attonrey which will lay out all the rules and guidelines for the partnership.

(Thanks for the comments on partnership.

Multi member requires Partnership 1065 aswell as sch k's for each member.

I am a new investor looking to wholesale and or MFH properties.Interested in partnerships if possible.

We sometimes refer to foreign entities as out-of-state entities to reinforce the concept that entities formed in other U.S. states are foreign entities, as well as entities formed outside of the United States.Registration RequirementsSection 9.001 of the Texas Business Organizations Code (“BOC”) requires the following types of foreign entities to file an application for registration with the Texas secretary of state if the entity is “transacting business” in Texas: * corporations; * limited partnerships; * limited liability partnerships; * limited liability companies; * business trusts; * real estate investment trusts; * cooperatives; * public or private limited companies; * any other foreign entity that, if formed in Texas, would be formed as a corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust; and * any other foreign entity that affords limited liability under the law of its jurisdiction of formation for any owner or member.Other laws or circumstances may also be reasons for registration. * Section 201.102 of the Texas Finance Code requires an out-of-state financial institution to register with the secretary of state before opening a branch or other office in Texas. * It has been the practice of the Texas Department of Insurance to refuse a non-resident agency license for a foreign entity unless the entity has registered with the secretary of state.

I will ask that any commissions made be added to the partnerships profit and divided out since I do believe splitting profits/losses based on our equity contribution is the easiest way to determine a fair split and that we shouldnt get "paid" unless we actually make money.

Is it a partnership?

Therefore in the real world you market that house as either a partnership opportunity or for $1M and then go tell all your friends how you just made $500k on one deal!

They don't see the need to set up a separate entity for every partnership, but I haven't ever done it personally, so I can't say - just what I know a lot of folks do.