N.Y. Partnership Law § 11: Rules for determining the existence of a partnership

§ 11. Rules for determining the existence of a partnership. In

determining whether a partnership exists, these rules shall apply:

1. Except as provided by section twenty-seven persons who are not

partners as to each other are not partners as to third persons.

2. Joint tenancy, tenancy in common, tenancy by the entireties, joint

property, common property, or part ownership does not of itself

establish a partnership, whether such co-owners do or do not share any

profits made by the use of the property.

3. The sharing of gross returns does not of itself establish a

partnership, whether or not the persons sharing them have a joint or

common right or interest in any property from which the returns are

derived.

4. The receipt by a person of a share of the profits of a business is

prima facie evidence that he is a partner in the business, but no such

inference shall be drawn if such profits were received in payment:

(a) As a debt by installments or otherwise,

(b) As wages of an employee or rent to a landlord,

(c) As an annuity to a surviving spouse or representative of a

deceased partner,

(d) As interest on a loan, though the amount of payment vary with the

profits of the business,

(e) As the consideration for the sale of the good-will of a business

or other property by installments or otherwise.