Yeah, You should definitely contact the pros on this one:
http://onestopcorporationshop.com/
Not sure, but I would imagine they would prefer a corporation. As stated, they'll get shares instead of %, plus it helps separate your personal assets from company assets, making things cleaner. For example, I would imagine they'd require you to sign over ownership of all intellectual property to the corporation, so the idea will no longer be yours, but the corporations. This way if shit hits the fan, or you don't pay up, it's much easier for them in court to take the corporation away than anything you personally own.
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