{"data":{"id":"us-al/ala.-code-10a-8a-2.01","jurisdiction":"us-al","citation":"Ala. Code § 10A-8A-2.01","heading":"Formation of Partnership.","body":"(a) Except as otherwise provided in subsection (b), the association of two or more persons:\n(1) to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership; or\n(2) to carry on any not for profit activity, forms a partnership when (A) the persons intend to form a partnership and (B) the persons deliver to the Secretary of State for filing a statement of not for profit partnership in accordance with Section 10A-8A-2.02(b) setting forth their intention to form a partnership to carry on a not for profit activity.\n(b) An association formed under a statute other than this chapter, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this chapter.\n(c) In determining whether a partnership is formed under Section 10A-8A-2.01(a)(1), the following rules apply:\n(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.\n(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.\n(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:\n(i) of a debt by installments or otherwise;\n(ii) for services as an independent contractor or of wages or other compensation to an employee;\n(iii) of rent;\n(iv) of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;\n(v) 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\n(vi) for the sale of the goodwill of a business or other property by installments or otherwise.","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 8A Alabama Partnership Law","Article 2 Formation of Partnership; Property."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-8A-2.01","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:53Z","sha256":"90be0c1bdba0690830463b4f8af2ab4e90379174d3b457aedfc5cb26521fd10e","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-8a-1.14","next":"us-al/ala.-code-10a-8a-2.02"},"notice":"GroundRules: Original legal text. Not legal advice."}