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You may want to reconsider the entity you are planning to form. Since you mentioned health insurance, an S corporation would be more beneficial from the health insurance standpoint. Please see the following for detailed information regarding how health insurance is treated when paid by a partnership vs. an S corporation:
Please let me know if you require further information or clarification.
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The expense and details would be similar whether you form an S corporation, partnership, or LLC. In the case of an LLC, it is a disregarded entity for tax purposes so you would have to elect to be taxed as either a partnership, S corporation or C corporation.
S corporations and partnerships are pass-through entities which file their own tax returns and the income/loss flows through to the shareholders (S corporation) or partners (partnership).
I specifically addressed your concern of health insurance, which is more advantageous to you and your friend if you form an S corporation rather than a partnership (as illustrated in the link I provided).
Please let me know if I can assist you further, and I will be happy to do so.