{"data":{"id":"us-ut/utah-code-16-18-202","jurisdiction":"us-ut","citation":"Utah Code § 16-18-202","heading":"Formation of partnership.","body":"(1) Except as otherwise provided in Subsection (2), 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(2) 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(3) In determining whether a partnership is formed, the following rules apply:\n(a) 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(b) 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(c) 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, 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 16 Business Entities","Chapter 16-18 Utah Uniform Partnership Act","Part 16-18-2 Nature Of Partnership"],"source_url":"https://le.utah.gov/xcode/Title16/Chapter18/16-18-S202.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-10-08T05:55:33Z","sha256":"39c146ee6903aecb5b4404b07dfd7f14b8405e22e5509aca9e619889e140e497","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-16-18-201","next":"us-ut/utah-code-16-18-203"},"notice":"GroundRules: Original legal text. Not legal advice."}