If your workers are legitimately independent contractors, then simply having WC in place won't trigger the kind of problems you're concerned about.  

Those two concepts I fully understand as my father, brother and I formed a three way partnership (LLC actually) that our three independent SDIRAs each own a third of.

I have 2 LLCs, 2 S-Corps, and I'm 49.5 owner in a Limited Partnership and carry 5 million umbrella.It has been explained to me like this, "inside" and "outside" protection.Outside- Protecting YOU and your personal assets from your property.

I agree it is difficult to give specific advice on this deal but let this be a cautionary tale for all those who think private lending is easy and simple and also to those who do off the cuff JV's.Lots of people talk of partnering here but there is very little talk of the contracts needed to make these partnerships work.

Then and only then should you pull the trigger.

Brad,Structuring of partnerships varies by individuals.

I am in the process of setting up a partnership and I have a million questions about what's right for us.

It would be prudent to have a business partner, rather than single member, simply because the LLC works to protect partnerships.

However it still adds up to a fair amount.3) Real EstateI own 1 house on my own (~$100k value), and 2 houses (~$50k each) in partnership with my father.

Another couple options are seller financing and joint venture partnerships.