I'm doing a joint venture with someone where we share the money 50/50. It's all under my SSN and the money all comes to my bank account. So I wire him his cut weekly. I'm from the US, he's from China. Were making a good bit of money and if I have to pay taxes on 100% of it then that would leave me with not too much left I would think. We have it set up to where it's basically like I'm paying him for "advertising" or like he's giving me a service for my business. I heard that all I need to do is get an invoice from him for each payment I send so that only 50% of the income is taxable. Problem, he doesn't pay taxes somehow and doesn't want to send me invoices because he's scared something could happen to where he would have to start paying taxes. It's just a single dude too, so no company or anything. So what exactly do I need to do so that I will only have to pay taxes on my part of the money? Also things such as hosting, domains, money spent on adwords ads, etc... can I write these off as business expenses and not pay taxes on that amount of money?