I like the second piece of advise for sure, but I am too locked in here with property/family/school.
For the business that I am starting or started officially this week. My business partner and I are starting out as a General Partnership. When sales and over all business appear to be good within six months. Then we will most likely incorporate. No matter how well you know your partner, get a lawyer and CPA to represent your side. As far as what you should do. It is a matter of how much money you are willing to spend on the startup. Our view point, is to see how the business is going to do. Before sinking several hundred dollars to incorporate.