35-10-202. Creation of partnership.
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/mt/title-35/chapter-10/part-2/35-10-202·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
35-10-202 . Creation of partnership.
(1)Except as provided in subsection (2), the association of two or more persons to carry on as co-owners a business for profit creates a partnership, whether or not the persons intend to create a partnership.
(2)An association created under a statute other than this chapter, a predecessor law, or a comparable law of another jurisdiction is not a partnership.
(3)In determining whether a partnership is created, the following rules apply:
(a)Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property, or part ownership does not by itself establish a partnership even if the co-owners share profits made by the use of the property.
(b)The sharing of gross returns does not by itself establish a partnership even if the persons sharing them have a joint or common right or interest in property from which the returns are derived.
(c)A person who receives a share of the profits of a business is presumed to be a partner in the business, unless the profits were received in payment:
(i)of a debt by installments or otherwise;
(ii)for services as an independent contractor or of wages or other compensation to an employee;
(iii)of rent;
(iv)of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;
(v)of interest or of another charge on a loan, even if the amount of payment varies with the profits of the business, including a direct or indirect present or future ownership of the collateral or rights to income, proceeds, or increase in value derived from the collateral; or
(vi)for the sale of the goodwill of a business or other property by installments or otherwise.
(4)Except as provided by 35-10-308 , persons who are not partners as to each other are not partners as to other persons.
(5)A partnership created under this chapter is a general partnership, and the partners are general partners of the partnership.