§ 362-1-202

362.1 -202 Formation of partnership. (1) 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. (2) An association forme d under a statute other than this subchapter, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this subchapter. (3) In determining whether a partnership is formed, the following rules apply: (a) Joint tenanc y, 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 b y 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 bu siness, unless the profits were received in payment: 1. Of a debt by installments or otherwise; 2.

(c) A person who receives a share of the profits of a business is presumed to be a partner in the bu siness, 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 benefi t 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.