<p>The best practice for setting up relationships is to use a star schema, where a fact table is surrounded by dimension tables. Power BI developer ensure relationships are defined using unique keys, typically on a single column, to maintain simplicity. Always set the cross-filtering direction to single for better performance unless the business logic requires bidirectional filtering. Avoid circular relationships, as they complicate the data model and slow down queries. Clearly label relationships and ensure that they align with business rules. Regularly review relationships for consistency and adjust as needed when datasets grow or change.</p>