2000 Minnesota Statutes

     323.06 Determination of whether partnership exists. 

    In determining whether a partnership exists, these rules 
 shall apply: 

    (1) Except as provided by section 323.15, persons who are 
 not partners as to each other are not partners as to third 
 persons; 

    (2) Joint tenancy, tenancy in common, tenancy by the 
 entireties, joint property, common property, or part ownership 
 does not of itself establish a partnership, whether such 
 coowners do or do not share any profits made by the use of the 
 property; 

    (3) The sharing of gross returns does not of itself 
 establish a partnership, whether or not the persons sharing them 
 have a joint or common right or interest in any property from 
 which the returns are derived; 

    (4) The receipt by a person of a share of the profits of a 
 business is prima facie evidence of partnership in the business, 
 but no such inference shall be drawn if such profits were 
 received in payment 

    (a) As a debt by installments or otherwise, 

    (b) As wages of an employee or rent to a landlord, 

    (c) As an annuity to a surviving spouse or representative 
 of a deceased partner, 

    (d) As interest on a loan, though the amount of payment 
 vary with the profits of the business, or 

    (e) As the consideration for the sale of a good will of a 
 business or other property by installments or otherwise; and 

    (5) The following are not evidence that a partnership does 
 not exist: 

    (a) failure or omission to file an original or renewal 
 registration under section 323.44; 

    (b) the expiration of a partnership's status as a limited 
 liability partnership; or 

    (c) the filing of a withdrawal statement under section 
 323.44. 

    HIST: (7390) 1921 c 487 s 7; 1986 c 444; 1994 c 539 s 11 

*   NOTE:  This section is repealed by Laws 1997, chapter 174, 
*article 12, section 68, as amended by Laws 1998, chapter 262, 
*section 12, effective January 1, 2002.