Section 202 - Formation of partnership. - Maryland Statutes

§ 9A-202. Formation of partnership.
 

(a)  In general.- Except as otherwise provided in subsection (c) of this section, the unincorporated 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 and whether or not the association is called "partnership", "joint venture", or any other name. 

(b)  Laws governing creation.- A partnership may be created under: 

(1) This title; 

(2) The Maryland Uniform Partnership Act and its subsequent amendments; or 

(3) A statute of another jurisdiction comparable to this title or the Maryland Uniform Partnership Act and their respective subsequent amendments. 

(c)  Other laws.- An unincorporated association or entity created under a law other than the laws described in subsection (b) of this section is not a partnership. 

(d)  Factors establishing formation of a partnership.- In determining whether a partnership is formed, the following rules apply: 

(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) 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) 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: 

(i) Of a debt by installments or otherwise; 

(ii) For services as an independent contractor or of wages or other compensation to an employee; 

(iii) Of rent; 

(iv) Of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner; 

(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 

(vi) For the sale of the goodwill of a business or other property by installments or otherwise. 
 

[1997, ch. 654, § 2; 1998, ch. 743, § 1; 2007, ch. 5, § 7.]