{"data":{"id":"us-vt/11-v.s.a.-3212","jurisdiction":"us-vt","citation":"11 V.S.A. § 3212","heading":"Formation of partnership","body":"(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.\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 except that a statute of another jurisdiction relating to the formation of partnerships or limited liability partnerships shall be deemed to be a comparable statute.\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(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.","path":["Title 11: Corporations, Partnerships and Associations","Chapter 022: Partnerships","Subchapter 002: NATURE OF PARTNERSHIP"],"source_url":"https://legislature.vermont.gov/statutes/section/11/022/03212","current_through":"2025 session","vintage":"","retrieved_at":"2026-09-05T16:00:21Z","sha256":"0f7cf262d3f5e2adcbf7cca122218d2f15bed9cd2ea6bdc6f2a68848e236702f","source_id":"us-vt","stale":false,"prev":"us-vt/11-v.s.a.-3211","next":"us-vt/11-v.s.a.-3213"},"notice":"GroundRules: Original legal text. Not legal advice."}