56a-202. Formation of partnership.

56a-202

Chapter 56a.--KANSAS UNIFORM PARTNERSHIP ACT
Article 2.--NATURE OF PARTNERSHIP

      56a-202.   Formation of partnership.(a) Except as otherwise provided in subsection(b), the association of two or more persons to carry on as co-owners a businessfor profit forms a partnership, whether or not the persons intend to form apartnership.

      (b)   An association formed under a statute other thanthis act, a predecessor statute, or a comparable statute ofanother jurisdiction is not a partnership under this act.

      (c)   In determining whether a partnership is formed, thefollowing rules apply:

      (1)   Joint tenancy, tenancy in common, tenancy bythe entireties, joint property, common property, or part ownershipdoes not by itself establish a partnership, even if the co-ownersshare profits made by the use of the property.

      (2)   The sharing of gross returns does not by itselfestablish a partnership, even if the persons sharing them have ajoint or common right or interest in property from which thereturns are derived.

      (3)   A person who receives a share of the profits ofa business is presumed to be a partner in the business, unless theprofits were received in payment:

      (i)   Of a debt by installments or otherwise;

      (ii)   for services as an independent contractoror of wages or other compensation to an employee;

      (iii)   of rent;

      (iv)   of an annuity or other retirement orhealth benefit to a beneficiary, representative, or designee of adeceased or retired partner;

      (v)   of interest or other charge on a loan, evenif the amount of payment varies with the profits of the business,including a direct or indirect present or future ownership of thecollateral, or rights to income, proceeds, or increase in valuederived from the collateral; or

      (vi)   for the sale of the goodwill of a businessor other property by installments or otherwise.

      History:   L. 1998, ch. 93, § 9; Jan. 1, 1999.