I would say that since one of you is performing services while the other is putting in money, a Corporate structure will not work. you would need to take a salary since you are performing services. division of profits 50/50 could not be done. for example, say the Corp made $20,000 in interest income and you took a salary of $4,000 that would leave $16,000 of net profits to be split 50/50 so you would end up with taxable income of $12,000 (1/2 the net profits and the $4,000 salary, while the other party would end up with taxable income of $8,000. to pay him a salary of $4,000 to even things out runs the risk of the IRS disallowing his salary as a tax deduction. this is even worse because you would end up with the same $12K he would end up with the $8k + the IRS under the tax laws would still also tax him on the $4,000 "salary". there would also be issues should the corp be liquidated.
this is as more a business arrangement than an investment arrangement. even investment clubs file partnership returns. https://taxmap.irs.gov/taxmap2018/pubs/p550-011.htm filing as a partnership would be prudent. failure to file a partnership return when required results in a penalty of about $200/momnth per member for a maximum of 12 months. that's $5,000 for every year a return isn't filed.
i have not addressed other tax issues that could arise
