§ 48-1d-202 — Formation of partnership.

Utah § 48-1d-202

• Jurisdiction: Utah
• Title 48: Unincorporated Business Entity Act
• Ch. 48-1d: Utah Uniform Partnership Act
• Part 48-1d-2: Nature of Partnership

Text

(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 chapter, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this chapter.
(3) In determining whether a partnership is formed, the following rules apply:

(3)(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.
(3)(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.
(3)(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:
(3)(c)(i) of a debt by installments or otherwise;
(3)(c)(ii) for services as an independent contractor or of wages or other compensation to an employee;
(3)(c)(iii) of rent;
(3)(c)(iv) of an annuity or other retirement or health benefit to a deceased or retired partner or a beneficiary, representative, or designee of a deceased or retired partner;
(3)(c)(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
(3)(c)(vi) for the sale of the goodwill of a business or other property by installments or otherwise.

Legislative History

Enacted by Chapter 412, 2013 General Session