Type of recycling business??

Recently started a new business venture… friend of mine owns a huge cargo trailer manufacturer company. Over million pounds of 6063 extrusion scrap a year.
I got involved and kicked company who was handling his waste out because he was getting jacked around.

my question is:
what type of business am I? I middle man his scrap and take it to the highest paying recycling company I can find. Am I a recycling company? Am I a recycling broker?
- I can set this company up anyway I need to… just want simplicity!!
- I can buy the scrap from my friend or middle man it
- I have been paying him half after I scrap his material. Pay him in cash… and you know I assume that is not the way I should be doing this.

any advice would be appreciated!!!

I wonder what business type is easiest for tax reasons?
should I have him hire me and run everything under his business name?
should I get a LLC
am I a recycling company
am I a broker??

please help

Hi again! Answered in sequence:

Currently sounds like a sole proprieter
Yes
No. Brokers don't haul material themselves
[Although not asked as question] No problem with paying cash. Just keep your records straight.
Sole proprietorship again
No
Yes
Yes
No

*****Get legal advice from a lawyer experienced with the IRS and LLC's.**** Be sure to explain the entire situation and the fact it's multi state commerce and there is a transaction over a certain amount the IRS needs to be made aware of. Obviously you are responsible for taxes on the entire amount due to a paper trail even if you split with someone and paid them in cash. The cash recipient must also tell the IRS about the money. You might have to reveal who your cash partner is. I would hate to go the LLC route and not say anything about the cash partner only to have it come back on you later and having to explain it all to the IRS why you did not tell them. They have no sense of humor and Federal laws exist that can jail you.