Colorado § 7-64-202 Formation of partnership

Colorado Statutes

§ 7-64-202 — Formation of partnership

Colorado § 7-64-202

Title 07Corporations

Art.Colorado Uniform Partnership Act (1997)

This text of Colorado § 7-64-202 (Formation of partnership) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 7-64-202 (2026).

Text

(1)Except as otherwise provided in subsection (2) of this section, 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. A limited liability partnership is for all purposes a partnership.

(2)Subject to section 7-64-1205, an association is not a partnership under this article if it is formed under a statute other than:

(a)This article;

(b)Article 60 of this title; or

(c)A comparable statute of another jurisdiction. A partnership that is subject to article 60 of this title by reason of the first sentence of subsection (2) of section 7-60-106 shall be deemed to be formed under article 60 for purposes of this subsection (2).

(3)In determining whether a partnership is

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(1) Except as otherwise provided in
subsection (2) of this section, 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. A limited liability partnership is for all purposes a
partnership.

(2) Subject to section 7-64-1205, an association is not a partnership under
this article if it is formed under a statute other than:

(a) This article;

(b) Article 60 of this title; or

(c) A comparable statute of another jurisdiction. A partnership that is subject
to article 60 of this title by reason of the first sentence of subsection (2) of section
7-60-106 shall be deemed to be formed under article 60 for purposes of this
subsection (2).

(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:

(I) Of a debt by installments or otherwise;

(II) For services as an independent contractor or of wages or other
compensation to an employee;

(III) Of rent;

(IV) Of an annuity or other retirement or health benefit to a beneficiary,
representative, or designee of a deceased or retired partner;

(V) 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

(VI) For the sale of the goodwill of a business or other property by
installments or otherwise.