{"data":{"id":"us-nj/n.j.-stat.-42-1a-10","jurisdiction":"us-nj","citation":"N.J. Stat. § 42:1A-10","heading":"Formation of partnership; rules for determining formation","body":"10.  a.  Except as otherwise provided in subsection b. of this section, 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.\nb.\tAn association formed under a statute other than this act, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this act.\nc.\tIn determining whether a partnership is formed, 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(a)  of a debt by installments or otherwise;\n(b)  for services as an independent contractor or of wages or other compensation to an employee;\n(c)  of rent;\n(d)  of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;\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(f)  for the sale of the goodwill of a business or other property by installments or otherwise.\nL.2000,c.161,s.10.","path":["TITLE 42 PARTNERSHIPS AND PARTNERSHIP ASSOCIATIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"9aea39f7e0e8dcc12e74af103f26725b7b859dd726435764d8a8b7d4787619ef","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-42-1a-9","next":"us-nj/n.j.-stat.-42-1a-11"},"notice":"GroundRules: Original legal text. Not legal advice."}