Business Entity to Form with partner?
Good afternoon everyone,
I am looking to form a business entity prior to acquiring my next (2nd) property. I'm looking to form a partnership that will increase his % as we go, as he is a sweat equity partner at the moment. I've known him for years, we have worked extremely well together on my first property, but he isn't coming to the table with much monetary investment, but is very well versed in home construction/reno. We're going to do most of the needed renovations ourselves to start out, and his share in the company will increase over the course of a few properties to a max of 49%. We've discussed all aspects of the business plan and have agreed. Our goals, and viewpoints are directly in line, some things he's weaker on, I excel at and he to my weaker areas. Now the next step is to file the appropriate business entity and get going. I'm going through the final step in BRRRing my first duplex, so I'm getting close to the next one but want this all legally set up before then.
So with that, I'm wondering what suggestions you may have as to which route to take, LLC, S corp, C corp, etc?
Thank you for your insight in advance, and have a great day!