A partnership is simply two or more people in business to make a profit. You don't need legal documents. Undocumented deals always carry the risk that months or years later, participants will remember details differently. Sometimes the difference is so great that it's hard to believe that people are talking about the same thing. One big job of business lawyers is to write all this down at the beginning to avoid misunderstandings later.
All partners have unlimited personal liability for partnership debts.
When a partnership can't pay its bills, creditors become interested in the question of who is a partner and who isn't. Triple Threat Inc. Ordinarily, organization as a corporation protects shareholders, who risk only capital invested in the firm. That's one big attraction of corporations. Investors don't want to risk houses, cars and kids. Cheesecake had to get around the corporation if it wanted to chase the owner of Triple Threat.