What is a requirement for forming a general partnership?

Forming a general partnership requires two or more persons to agree to share profits and losses. This foundational agreement is essential because it establishes the partnership's existence and operational framework. In a general partnership, all partners actively participate in managing the business and are personally liable for debts incurred by the partnership. The principle of sharing profits and losses links the partners together, creating a mutual responsibility for the business's financial performance.

The other options do not accurately describe the necessary requirements for forming a general partnership. For instance, the misinterpretation that one partner must hold a majority share does not apply, as partnerships do not require a hierarchical distribution of ownership like corporations. Furthermore, the concept of limited liability members pertains more to limited liability partnerships (LLP) and not to general partnerships, where all partners have unlimited liability. Lastly, registration as a corporation is not relevant, as a general partnership does not require formal registration or the corporate structure; it can be established simply through a mutual agreement between partners.