What is one obligation when forming a partnership?

When forming a partnership, one key obligation is to register individually with HMRC (Her Majesty's Revenue and Customs). This requirement arises because partners are personally liable for the profits and losses of the partnership, and as such, they need to inform HMRC about their income from the business. Registration ensures that each partner is accountable for their tax obligations and allows HMRC to properly assess the tax liabilities for each individual as part of their income tax returns.

The other options do not align with the typical obligations of forming a partnership. For instance, designating a CEO is a structure more associated with corporations rather than partnerships, where decision-making is often more collaborative among partners. Obtaining insurance for all partners is highly advisable for risk management but isn't a formal obligation required by law during the formation process. Filing for bankruptcy protection is related to business solvency issues and not a prerequisite when establishing a partnership. This underscores the importance of individual registration with HMRC as a foundational step in the legal and financial responsibilities of partners.