No formalities are necessary to create a partnership. Two persons may become partners in accordance with a written partnership contract or partnership agreement. They may agree orally to be partners, or they may become partners merely by arranging their affairs as if they were partners. If partners conduct business under an assumed name, they must file the name with the Utah Division of Corporations and Commercial Code in compliancewith Utah statute requiring the registration of fictitious business name.
When people decide to become partners, they should employ a lawyer to prepare a written partnership agreement. Although such an agreement is not required to form a partnership, it is highly desirable for the same reasons that written contract are generally preferred. In addition, the Statute of Frauds requires a writing for a partnership having a term exceeding one year.
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