I've had the “pleasure” to experience both versions of working with friends; I've worked with friends who I'm no longer friends with, and friends I'm still working with.
I personally feel that working with people I care about personally brings out the best in me, and I do my best work. I need that “chemistry”.
However, working with friends is a grownup relationship. In order for it to work you need to possess a great amount of emotional intelligence and maturity.
I know from experience—mine and others'—that once you survive a couple of shipwrecks you're probably good for the long run.
Go for it!