What is the recommended way to form a general partnership?

Drafting a written partnership agreement is the recommended way to form a general partnership because it clearly outlines the roles, responsibilities, and expectations of each partner. A written agreement serves as an essential reference point that can help prevent disputes by detailing each partner's contributions, profit-sharing arrangements, decision-making processes, and conflict resolution mechanisms. This formal documentation adds an additional layer of protection for the partners by providing legal clarity and enhancing accountability within the partnership.

While oral agreements and verbal understandings can technically establish a partnership, they often lead to misunderstandings and disagreements since they lack clarity and enforceability. "No documentation required" is misleading, as having no formal agreement leaves partners vulnerable to potential legal and operational ambiguities. Verbal agreements on profits, while they may be a part of discussions, are not sufficient on their own to govern the complex relationships and responsibilities that arise in a partnership. Therefore, having a clearly drafted written partnership agreement is the best practice in forming a general partnership.