Use a experienced lawyer, leave nothing to chance and outline every detail/expectation.

I just started at a real estate agency, and I found and -mostly- read a book, called the _The Millionaire Real Estate Investor_ by Gary Keller.In it, he outlines CTN - 'N' being for network.

The difference has already been clearly outlined in existing laws.Personally I would rather discourage a seller who's on the fence about doing a deal with me.

That could helpful just to do your taxes and have records for an audit...sounds like the details for documenting could be better....Liability wise and for employee taxation issues, you can find some rules both the irs uses (search employee versus independent contractor on the IRS site) and your states outline of the distinction related to liability will probably be similar but may also focus on factors like whether you are controlling the means or just the ends (telling them the outcome is okay but not the exact means)...are you a client/customer or supervisor here?

Great job outlining your strengths and weaknesses.

Of course, I want to have have a solid contract that outlines everything including his responsibility and his risks.

Our company issues you a Letter of Intent to Fund in 24 hours from receipt of your application to submit with your offer that outlines the terms of our loan to you. 

What you outlined (having one entity and an umbrella policy) is what my father has done and it's worked well.Hope this all helps!

All of that would be outlined in a standard buyer broker contract.I agree with Michael, you need to have a team in place that you feel you can trust and is working in your best interest.

I would probably start as TIC with % listed and have a JV agreement outlining how sales proceeds and/or losses are addressed.