{"data":{"id":"us-wa/rcw-25.05.055","jurisdiction":"us-wa","citation":"RCW 25.05.055","heading":"Formation of partnership.","body":"(1) Except as otherwise provided in subsection (2) 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(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; and\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 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 25","Chapter 25.05"],"source_url":"https://app.leg.wa.gov/rcw/default.aspx?cite=25.05.055","current_through":"July 15, 2026","vintage":"","retrieved_at":"2026-09-06T01:40:33Z","sha256":"de579c69bb7b0c19277ff208764319940c9fda429a9addd172a014a0dd66645f","source_id":"us-wa","stale":false,"prev":"us-wa/rcw-25.05.050","next":"us-wa/rcw-25.05.060"},"notice":"GroundRules: Original legal text. Not legal advice."}