Yes
Taxation (corporate as well as income tax) could hit the shareholders twice. I think distributions also attract a surcharge.
Companies need administration - keep and file proper books of accounts, board of directors (and all the responsibilities that go with it nowadays, its no joke!) etc.
Business plan?
What happens if shareholders wish to exit in the future?
Limited partnership is probably a better way to go if you wanted to do this.
Before you embark on this road, i would suggest getting appropriate taxation, financial and legal advice.