{"data":{"id":"us-pa/15-pa.c.s.-8422","jurisdiction":"us-pa","citation":"15 Pa.C.S. § 8422","heading":"Formation of partnership.","body":"(a) General rule.--Except as 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(b) Excluded associations.--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) Rules for determining formation of partnership.--In 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(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 deceased or retired partner or 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, 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.\n(d) Cross reference.--See section 8416(c) (relating to application of partnership agreement).","path":["Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS","PART III PARTNERSHIPS AND LIMITED LIABILITY COMPANIES","CHAPTER 84 GENERAL PARTNERSHIPS","SUBCHAPTER B NATURE OF PARTNERSHIP"],"source_url":"https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM\u0026ttl=15\u0026div=0\u0026chpt=84\u0026sctn=22\u0026subsctn=0","current_through":"2026-07-28 (Statute Update stamp, 15 Pa.C.S.)","vintage":"","retrieved_at":"2026-09-02T16:31:13Z","sha256":"8529dd108b4398eb2a0044ee113bd0550567438346f3484278011b4614eac9b2","source_id":"us-pa","stale":false,"prev":"us-pa/15-pa.c.s.-8421","next":"us-pa/15-pa.c.s.-8423"},"notice":"GroundRules: Original legal text. Not legal advice."}