What distinct feature does a partnership usually require?

A partnership typically requires a formal agreement among partners, commonly referred to as a partnership agreement. This document outlines the terms of the partnership, including each partner's contributions, responsibilities, profit-sharing arrangements, and procedures for resolving disputes. Having a clear formal agreement helps to create a stable framework for the partnership and can prevent misunderstandings and conflicts amongst partners.

While some partnerships may choose to write down other details such as assets or obtain business permits, these are not universally required features of all partnerships. The focus of partnership requirements is primarily on the agreement among partners, which clarifies the operational structure and expectations essential for running the partnership effectively. Annual performance reviews pertain more to employee evaluations and do not specifically apply to the fundamental nature of a partnership.