I own a small business, so I do know the benefits of having an LLC or any other type of legal entity. We have an LLC for our current airplane partnership, and just had our taxes (K1) created. The cost for this was about $500, so one of the partners asked why we have it, and can we dissolve it just running on our agreement. In a small three person partnership in an airplane that looks like it loses money every year have a benefit over a partnership with an agreement? In this case mostly just to avoid a $500 fee. Every partnership I've been in was an LLC.