Welcome. My name is XXXXX XXXXX it will be my pleasure to assist you with your tax question today.
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.
Thank you and best regards,
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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.