(805 ILCS 206/202)
Sec. 202.
Formation of partnership.
(a) Except as otherwise provided in subsection (b), the association of 2
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.
(b) An association formed under a statute other than this Act, a predecessor
statute, or a
comparable statute of another jurisdiction is not a partnership under this Act.
(c) 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.
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(2) The sharing of gross returns does not by itself
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| 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.
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(3) A person who receives a share of the profits of a
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| business is presumed to be a partner in the business, unless the profits were received in payment:
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(i) of a debt by installments or otherwise;
(ii) for services as an independent contractor or
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| of wages or other compensation to an employee;
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(iii) of rent;
(iv) of an annuity or other retirement or health
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| benefit to a beneficiary, representative, or designee of a deceased or retired partner;
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(v) of interest or other charge on a loan, even
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| 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
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(vi) for the sale of the goodwill of a business
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| or other property by installments or otherwise.
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(Source: P.A. 92-740, eff. 1-1-03.)
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