I'm interested in forming a partnership with an individual located in India. I myself am located in the United States. The company would focus on the development of Internet-based assets.

Is an LLC the recommended the recommended form of business for this situation?
What are the appropriate steps for forming an LLC (or something other) when one of the partners is located outside of the US?

You may not want the foreign person to own an interest in a US LLC. If the LLC is engaged in a U.S. trade or business (e.g., through your activities in the U.S.), the foreign owner will be deemed to be engaged in a U.S. trade or business. Creating a foreign entity of which you own 50% may be better. There are some complications/filing obligations to creating a foreign entity, but your partner can avoid U.S. tax.