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In this video, Mark Kohler discusses the importance of a proper legal structure for partnerships, cautioning against informal arrangements like handshake deals or email agreements. He highlights the basic joint venture agreement as a starting point, noting its risks as it classifies as a general partnership, which exposes both parties to personal liability for each other's actions. Kohler emphasizes the necessity of having a quality joint venture agreement, often referred to as a partnership agreement, to protect assets and outline the terms of collaboration. He suggests considering this document essential for any partnering project.