29-1012. Formation of partnership
A. Except as otherwise provided in subsections B and C, the association of two 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.
B. An association formed under a statute other than this chapter, a predecessor
statute or a comparable statute of another jurisdiction is not a partnership under this
chapter.
C. In determining whether a partnership is formed, the following rules apply:
1. 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, except that the ownership
establishes a partnership if the persons have declared in a written partnership agreement
that the property is partnership property subject to the provisions of the partnership
agreement and this chapter.
2. 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.
3. 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 either:
(a) Of a debt by installments or otherwise.
(b) For services as an independent contractor or of wages or other compensation to
an employee.
(c) Of rent.
(d) Of an annuity or any other retirement benefit to a beneficiary, representative
or designee of a deceased or retired partner.
(e) 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.
(f) For the sale of the goodwill of any business or other property by installments
or otherwise.
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