{"data":{"id":"us-sd/sdcl-48-7a-202","jurisdiction":"us-sd","citation":"SDCL § 48-7A-202","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(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, 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 48. PARTNERSHIPS","CHAPTER 48-7A. UNIFORM PARTNERSHIP ACT"],"source_url":"https://sdlegislature.gov/Statutes/48-7A-202","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"49971689cd74498509c4971cf88d11cc3ee2d89c39ceeb024406866b3dd36293","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-48-7a-201","next":"us-sd/sdcl-48-7a-203"},"notice":"GroundRules: Original legal text. Not legal advice."}