Just like a sole proprietorship, a partnership, which is simply a business owned by two or more people, does not require registration with the state (aside from acquiring a business license).  Also like a sole proprietorship, it lacks any liability protection for the partners.  The benefits of forming a formal business entity go beyond liability protection. The accompanying operating agreement establishes by contract between the owners how profits will be distributed, how the company will be managed, how ownership interest in the company may be transferred, etc.