I have always done a 50/50 partnership in these scenarios.

I pay about $2500 a year for each of my partnership returns with my CPA regardless of whether it’s a $1M deal or a $5M deal.I would save the partnership conversation for if and when you are doing much bigger deals.

Being that the LLC is two member it defaults to a partnership.

The two of you would need to sit down with an attorney together and have a partnership agreement drawn up.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

You're on the right track to reach out for help here and also to look to your area for potential partnerships.

Tony Robinson and Ashley Kehr have a BP book on Real Estate Partnerships.

What penalties are normal for this type of partnership?

Hello, I have a few questions about acquiring projects with different partnership structures. 

@Andy Nathan Thanks for your input, I will have to look into what goes into forming an LLC with an equal 50-50 partnership.