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Hi, my name is Mark. I will be happy to help you with your questions.
Yes, you could form an LLC where your brother is a partner. With an LLC there is flexibility from the allocation of profits and losses.
You are correct that your brother would need an interest in the partnership. One of the benefits of an LLC is that it is very flexible. You can structure the partnership agreement where you would receive guaranteed payments for the services that you perform for the partnership. You would be able to allocate the remaining profit or loss by the ownership percentage.
I do not believe that you are understand what I am saying. You would need to allocate profits or losses to your brother based on a reasonable method. Often this is done based on ownership percentage. You could receive guaranteed payments for your services that would reduce the net income of the LLC. By using guaranteed payments you would be allocated all of the income. Let's assume that the LLC generated a taxable income of $100,000. If you receive $100,000 in guaranteed payments the net income drops to zero. The guaranteed payments would be reflected as income on your K-1. This is the same as my previous response.