362.1-202 Formation of partnership.
(1)
(2)
(3)
Except as otherwise provided in subsection (2) of this section, the association of
two (2) or more persons to carry on as co-owners a business for profit forms a
partnership, whether or not the persons intend to form a partnership.
An association formed under a statute other than this subchapter, a predecessor
statute, or a comparable statute of another jurisdiction is not a partnership under this
subchapter.
In determining whether a partnership is formed, 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:
1.
Of a debt by installments or otherwise;
2.
For services as an independent contractor or of wages or other
compensation to an employee;
3.
Of rent;
4.
Of an annuity or other retirement or health benefit to a beneficiary,
representative, or designee of a deceased or retired partner;
5.
Of interest or other 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
6.
For the sale of the goodwill of a business or other property by
installments or otherwise.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 25, effective July 12, 2006.
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