My friend and I have an opportunity to generate leads (sales referrals) for an existing brick and mortar business. The company has a successful affiliate and direct sales program that pays 0 per referred sale.
They currently have no Internet representation. My partner and I plan to generate sales from Internet marketing only – no traditional sales.
What is the best way to legally set up the business to protect our interests as a company and my interests personally?
When you say "protect our interests as a company," do you mean the company you are referring people to or the one you plan to form with your friend?
It really depends if you are employees of the brick and mortar business. If you aren’t, you could set up a limited liability company (LLC) and have the brick and mortar business pay your company (the LLC) for the referrals. You and your partner would then file the appropriate tax forms for your partnership.