Texas § 152.052 RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.

Texas Statutes

§ 152.052 — RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.

Texas § 152.052

Code BOBusiness Organizations Code

This text of Texas § 152.052 (RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 152.052 (2026).

Text

Sec. 152.052. RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.

(a)Factors indicating that persons have created a partnership include the persons':

(1)receipt or right to receive a share of profits of the business;

(2)expression of an intent to be partners in the business;

(3)participation or right to participate in control of the business;

(4)agreement to share or sharing:

(A)losses of the business; or

(B)liability for claims by third parties against the business; and

(5)agreement to contribute or contributing money or property to the business.

(b)One of the following circumstances, by itself, does not indicate that a person is a partner in the business:

(1)the receipt or right to receive a share of profits as payment:

(A)of a debt, including repayment by installments;

(B)of wa

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 152.052. RULES FOR DETERMINING IF PARTNERSHIP IS CREATED. (a) Factors indicating that persons have created a partnership include the persons':
(1) receipt or right to receive a share of profits of the business;
(2) expression of an intent to be partners in the business;
(3) participation or right to participate in control of the business;
(4) agreement to share or sharing:
(A) losses of the business; or
(B) liability for claims by third parties against the business; and
(5) agreement to contribute or contributing money or property to the business.
(b) One of the following circumstances, by itself, does not indicate that a person is a partner in the business:
(1) the receipt or right to receive a share of profits as payment:
(A) of a debt, including repayment by installments;
(B) of wages or other compensation to an employee or independent contractor;
(C) of rent;
(D) to a former partner, surviving spouse or representative of a deceased or disabled partner, or transferee of a partnership interest;
(E) of interest or other charge on a loan, regardless of whether the amount varies with the profits of the business, including a direct or indirect present or future ownership interest in collateral or rights to income, proceeds, or increase in value derived from collateral; or
(F) of consideration for the sale of a business or other property, including payment by installments;
(2) co-ownership of property, regardless of whether the co-ownership:
(A) is a joint tenancy, tenancy in common, tenancy by the entirety, joint property, community property, or part ownership; or
(B) is combined with sharing of profits from the property;
(3) the right to share or sharing gross returns or revenues, regardless of whether the persons sharing the gross returns or revenues have a common or joint interest in the property from which the returns or revenues are derived; or
(4) ownership of mineral property under a joint operating agreement.
(c) An agreement by the owners of a business to share losses is not necessary to create a partnership.