Cal. Corporations Code - CORP § 16201. Section 16201.
A partnership is an entity distinct from its partners.
ARTICLE 2. Nature of Partnership [16201. - 16204.]
Cal. Corporations Code - CORP 2.
in effectCal. Corporations Code - CORP § 16202. Section 16202.
(a)
Except as otherwise provided in subdivision (b), the association of two or more persons to carry on as coowners a business for profit forms a partnership, whether or not the persons intend to form a partnership.
(b)
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.
(c)
In determining whether a partnership is formed, the following rules apply:
(1)
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 coowners share profits made by the use of the property.
(2)
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)
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 for any of the following reasons:
(A)
In payment of a debt by installments or otherwise.
(B)
In payment for services as an independent contractor or of wages or other compensation to an employee.
(C)
In payment of rent.
(D)
In payment of an annuity or other retirement benefit to a beneficiary, representative, or designee of a deceased or retired partner.
(E)
In payment 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.
(F)
In payment for the sale of the goodwill of a business or other property by installments or otherwise.
Cal. Corporations Code - CORP § 16203. Section 16203.
Property acquired by a partnership is property of the partnership and not of the partners individually.
Cal. Corporations Code - CORP § 16204. Section 16204.
(a)
Property is partnership property if acquired in the name of either of the following:
(1)
The partnership.
(2)
One or more partners with an indication in the instrument transferring title to the property of the person’s capacity as a partner or of the existence of a partnership but without an indication of the name of the partnership.
(b)
Property is acquired in the name of the partnership by a transfer to either of the following:
(1)
The partnership in its name.
(2)
One or more partners in their capacity as partners in the partnership, if the name of the partnership is indicated in the instrument transferring title to the property.
(c)
Property is presumed to be partnership property if purchased with partnership assets, even if not acquired in the name of the partnership or of one or more partners with an indication in the instrument transferring title to the property of the person’s capacity as a partner or of the existence of a partnership.
(d)
Property acquired in the name of one or more of the partners, without an indication in the instrument transferring title to the property of the person’s capacity as a partner or of the existence of a partnership and without use of partnership assets, is presumed to be separate property, even if used for partnership purposes.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026