A partnership exists when two or more persons join together in the operation and management of business for profit. Partnerships, like sole proprietorships, are subject to relatively little regulation and are fairly easy to establish. A formal partnership agreement is recommended in order to address potential conflicts before they arise. Under a general partnership, each partner is liable for all debts of the business. All profits are taxed as income to the partners based on their percentage of ownership. A general partnership, like a sole proprietorship, must file a "Certificate of Co-Partnership" or a "Certificate of Persons Conducting Business Under Assumed Name" with the county clerk's office in the counties in which the business is located.