{"data":{"id":"us-tx/tex.-business-organizations-code-152.052","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 152.052","heading":"RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.","body":"(a) Factors indicating that persons have created a partnership include the persons':\n(1) receipt or right to receive a share of profits of the business;\n(2) expression of an intent to be partners in the business;\n(3) participation or right to participate in control of the business;\n(4) agreement to share or sharing:\n(A) losses of the business; or\n(B) liability for claims by third parties against the business; and\n(5) agreement to contribute or contributing money or property to the business.\n(b) One of the following circumstances, by itself, does not indicate that a person is a partner in the business:\n(1) the receipt or right to receive a share of profits as payment:\n(A) of a debt, including repayment by installments;\n(B) of wages or other compensation to an employee or independent contractor;\n(C) of rent;\n(D) to a former partner, surviving spouse or representative of a deceased or disabled partner, or transferee of a partnership interest;\n(E) of interest or other charge on a loan, regardless of whether the amount varies with the profits of the business, including a direct or indirect present or future ownership interest in collateral or rights to income, proceeds, or increase in value derived from collateral; or\n(F) of consideration for the sale of a business or other property, including payment by installments;\n(2) co-ownership of property, regardless of whether the co-ownership:\n(A) is a joint tenancy, tenancy in common, tenancy by the entirety, joint property, community property, or part ownership; or\n(B) is combined with sharing of profits from the property;\n(3) the right to share or sharing gross returns or revenues, regardless of whether the persons sharing the gross returns or revenues have a common or joint interest in the property from which the returns or revenues are derived; or\n(4) ownership of mineral property under a joint operating agreement.\n(c) An agreement by the owners of a business to share losses is not necessary to create a partnership.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 4. PARTNERSHIPS","CHAPTER 152. GENERAL PARTNERSHIPS","SUBCHAPTER B. NATURE AND CREATION OF PARTNERSHIP"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.152.htm#152.052","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"7a1e6e1870b608ff6e5e2c3b00d244abd09e24dad76c323d8fb0d3127f35fe48","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-152.051","next":"us-tx/tex.-business-organizations-code-152.053"},"notice":"GroundRules: Original legal text. Not legal advice."}