KRS 362.1-202: Formation of partnership.

(1) Except as otherwise provided in subsection (2) of this section, the association of

two (2) or more persons to carry on as co -owners a business for profit forms a

partnership, whether or not the persons intend to form a partnership.

(2) An association forme d under a statute other than this subchapter, a predecessor

statute, or a comparable statute of another jurisdiction is not a partnership under this

subchapter.

(3) In determining whether a partnership is formed, the following rules apply:

(a) Joint tenanc y, 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.

(b) The sharing of gross returns does not b y 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.

(c) 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:

1. Of a debt by installments or otherwise;

2. For services as an independent contractor or of wages or other

compensation to an employee;

3. Of rent;

4. Of an annuity or other retirement or health benefi t to a beneficiary,

representative, or designee of a deceased or retired partner;

5. 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

6. For the sale of the goodwill of a business or other property by

installments or otherwise.