Formation of partnership.

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(1) Except as otherwise provided in subsection (2), 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.

(2) An association formed under a statute, other than this act, a predecessor statute, or a comparable law of another jurisdiction is not a partnership under this act.

(3) 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. 1. Of a debt by installments or otherwise;

  2. 2. For services as an independent contractor or of wages or other compensation to an employee;

  3. 3. Of rent;

  4. 4. Of an annuity or other retirement benefit to a beneficiary, representative, or designee of a deceased or retired partner;

  5. 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. 6. For the sale of the goodwill of a business or other property by installments or otherwise.

History.—s. 13, ch. 95-242.


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