Go to the https://www.irs.gov/uac/Form-1065,-U.S.-Return-of-Partnership-Income and review the instructions for Form 1065, U.S. Return of Partnership Income and any supporting schedules in preparation of preparing a partnership tax return.

What if one of your colleagues offer you the opportunity to become a partner in a new business venture. The colleague stipulates that due to your past relationship, there is no reason to draw up a partnership agreement. From the information youve gathered from Form 1065, what are the different partnership roles and which one would have the least potential liability if the business fails? What are the pros and cons of drawing up a partnership agreement?