{"data":{"id":"us-ky/krs-362.1-202","jurisdiction":"us-ky","citation":"KRS 362.1-202","heading":"Formation of partnership.","body":"(1) Except as otherwise provided in subsection (2) of this section, the association of\ntwo (2) or more persons to carry on as co -owners a business for profit forms a\npartnership, whether or not the persons intend to form a partnership.\n(2) An association forme d under a statute other than this subchapter, a predecessor\nstatute, or a comparable statute of another jurisdiction is not a partnership under this\nsubchapter.\n(3) In determining whether a partnership is formed, the following rules apply:\n(a) Joint tenanc y, tenancy in common, tenancy by the entireties, joint property,\ncommon property, or part ownership does not by itself establish a partnership,\neven if the co-owners share profits made by the use of the property.\n(b) The sharing of gross returns does not b y itself establish a partnership, even if\nthe persons sharing them have a joint or common right or interest in property\nfrom which the returns are derived.\n(c) A person who receives a share of the profits of a business is presumed to be a\npartner in the business, unless the profits were received in payment:\n1. Of a debt by installments or otherwise;\n2. For services as an independent contractor or of wages or other\ncompensation to an employee;\n3. Of rent;\n4. Of an annuity or other retirement or health benefi t to a beneficiary,\nrepresentative, or designee of a deceased or retired partner;\n5. Of interest or other charge on a loan, even if the amount of payment\nvaries with the profits of the business, including a direct or indirect\npresent or future ownership of  the collateral, or rights to income,\nproceeds, or increase in value derived from the collateral; or\n6. For the sale of the goodwill of a business or other property by\ninstallments or otherwise.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34474","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:57Z","sha256":"460e6972bcf314ef63bb0cc26b4a0ffa5c0e673e89a9bfec09910376de1d0e07","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.1-201","next":"us-ky/krs-362.1-203"},"notice":"GroundRules: Original legal text. Not legal advice."}