29-602.02. Formation of partnership.
(a)
Except as otherwise provided in subsection (b) of this section, the association of 2 or more persons to carry on as co-owners of a business for profit shall form 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 shall not be a partnership under this chapter.
(c)
In determining whether a partnership is formed, the following rules shall apply:
(1)
Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property, or part ownership shall not by itself establish a partnership, even if the co-owners share profits made by the use of the property.
(2)
The sharing of gross returns shall 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 that receives a share of the profits of a business shall be presumed to be a partner in the business, unless the profits were received in payment:
(A)
Of a debt by installments or otherwise;
(B)
For services as an independent contractor or of wages or other compensation to an employee;
(C)
Of rent;
(D)
Of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;
(E)
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
(F)
For the sale of the goodwill of a business or other property by installments or otherwise.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.)
