{"data":{"id":"us-hi/haw.-rev.-stat.-425-109","jurisdiction":"us-hi","citation":"Haw. Rev. Stat. § 425-109","heading":"Formation of partnership.","body":"(a) Except as otherwise provided in subsection (b), the association of two 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.\n\n(b) An association formed under a statute other than this part, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this part.\n\n(c) In determining whether a partnership is formed, the following rules apply:\n\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\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\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\n(A) Of a debt by installments or otherwise;\n\n(B) For services as an independent contractor or of wages or other compensation to an employee;\n\n(C) Of rent;\n\n(D) Of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;\n\n(E) 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\n(F) For the sale of the goodwill of a business or other property by installments or otherwise.","path":["HI Code","Division 2","Title 23","Chapter 425"],"source_url":"http://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0425/HRS_0425-0109.htm","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:11Z","sha256":"337f88b0baa9056a56fe93d07235bc87466d70df7875737261d4574bef0d56c6","source_id":"us-hi","stale":false,"prev":"us-hi/haw.-rev.-stat.-425-107","next":"us-hi/haw.-rev.-stat.-425-11"},"notice":"GroundRules: Original legal text. Not legal advice."}