What must partners generally do upon forming a partnership?

When partners form a partnership, it is typically essential for them to draft a written agreement. This partnership agreement serves several crucial purposes: it outlines the roles, responsibilities, and rights of each partner, provides the framework for the operation of the partnership, and addresses how profits and losses will be shared. While partnerships can technically be formed without a written agreement, having one ensures clarity and reduces the risk of disputes among partners in the future.

The absence of a formal agreement can lead to misunderstandings and conflicts, as verbal agreements or informal arrangements may not capture the full intent of the partners. Therefore, drafting a written agreement is a standard and advisable step in establishing a partnership, helping to create a solid foundation for their business relationship.