What is a common feature of partnerships regarding their formation?

A common feature of partnerships regarding their formation is indeed that they usually require a formal written agreement. This written agreement, often referred to as a partnership agreement, outlines the terms of the partnership, including each partner’s contributions, responsibilities, profit sharing, and procedures for resolving disputes. While partnerships can theoretically be formed without a written agreement, having a formal document greatly clarifies the terms of the relationship and can prevent misunderstandings or conflicts in the future.

In practice, although partnerships can be established with just a verbal agreement or even through the conduct of the partners, a written agreement is preferred for ensuring that all parties are on the same page regarding their rights and obligations. This documentation serves as a crucial reference point if disagreements arise or if the partnership dissolves.

The other options present characteristics that do not accurately describe the nature of partnerships in general. For instance, partnerships do not have to be registered with the federal government, which is typically a requirement for corporations. Additionally, partnerships can be formed with any number of partners, well beyond three, and their formation does not necessarily hinge on having a formal written document, although it is highly recommended.