1. If you invest with someone and they are the one doing the leg work; How do you divide up a profit? Example: Let's say I invest $40, 000 on a deal and my partner invest $10,000 on the deal but they are doing all of the legwork and I'm only giving the money: When we sell the property: how is the profit divided up? What's fair from a percentage standpoint?
2. After I receive my profit: is there a document given during the sale of the property that I have to report on my taxes or is it my responsibility to report what my profit was from the deal?
The exact split will depend on how much work is being done and their role in the process. I would estimate the profit from the deal and the hours each will spend during the process and then determine the split. I would suggest you speak to an attorney about drafting the operating agreement for the LLC.
For the second question, you should speak to your CPA.