The first thing to do is to visit your public libraries and read at least a couple books on these issues. Here are a couple things to check on: 1. I believe that if you form a corporation, then the corporation has to pay its own taxes on profits (if any, of course). Then the shareholders have to pay more taxes when they get their distributions. Why do that?

2. I took a college level accounting course, and one conclusion I reached is that the partnership is a very dangerous way to do business. Yes, it simplifies taxes, but it yokes you to your partner. Read the books to see what I mean.