§ 1776.22

Effective: August 6, 2008 Latest Legislation: House Bill 332 - 127th General Assembly (A) Except as otherwise provided in division (B) of this section, any 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 not included in 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) Holding property in 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.(2) The sharing of gross returns does not by itself establish a partnership, even if the persons sharing the returns 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 for any of the

om 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 for any of the following:(a) A debt by installments or otherwise;(b) Services as an independent contractor or wages or other compensation to an employee;(c) Rent;(d) An annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;(e) 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) The sale of the goodwill of a business or other property by installments or otherwise.