1. (a) Except as otherwise provided in subsection (b), the association of two or more persons:

   1. (1) to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership; or
   2. (2) to carry on any not for profit activity, forms a partnership when (A) the persons intend to form a partnership and (B) the persons deliver to the Secretary of State for filing a statement of not for profit partnership in accordance with Section 10A-8A-2.02(b) setting forth their intention to form a partnership to carry on a not for profit activity.
2. (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.

3. (c) In determining whether a partnership is formed under Section 10A-8A-2.01(a)(1), the following rules apply:

   1. (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.
   2. (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.

   3. (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:

      1. (i) of a debt by installments or otherwise;
      2. (ii) for services as an independent contractor or of wages or other compensation to an employee;
      3. (iii) of rent;
      4. (iv) of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner;
      5. (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
      6. (vi) for the sale of the goodwill of a business or other property by installments or otherwise.

(Act 2018-125, §7.)