view printer friendly version     Partnership 1998- Legal Entities C - 55.4 The association of two or more persons to act as co-owners of a business for profit forms a partnership, whether or not the persons intend to form a partnership. [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 co-owners 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 in payment of a) a debt by installments or otherwise; b) services as an independent contractor, wages, or other compensation to an employee; c) rent; d) an annuity or other retirement or other retirement benefit to a beneficiary, representative, or designee of a deceased or retired partner; e) 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) the sale of the goodwill of a business or other property by installments or otherwise.]   NDCC 45-13-01(4), 45-14-02(1), 45-14-02(3) view printer friendly version