Fix and flip tax question

[Pat C.]

Does anyone have a good suggestion on the best way to handle setting up and taxing a single family home rehab and flip?

My investor on this this project purchased this home using cash and the property is in his name.  His cash on initial purchase price, closing cost, etc.  We then split renovation cost and split profits at time of sale.

I want to most effectively handle taxation and then roll my portion of profits into another real estate investment.  

Our deal is a handshake agreement with nothing in writing. I want to offer my investor the most protection from litigation and Uncle Sam in a legally conforming way of course.

Any suggestions or tips on how to shelter profits and reduce tax bill would be greatly appreciated. I think the project should be in the name of an LLC to protect the investor.