Texas Business Organizations Code - Section 152.052. Rules For Determining If Partnership Is Created
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§ 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.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 151.003 152.001 152.002 152.003 152.004 152.005 152.051 152.052 152.053 152.054 152.055 152.056 152.101 152.102 152.201
Last modified: August 11, 2007
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