Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process.
Recent laws may not yet be included in the ILCS database, but they are found on this site as
Public
Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the
Guide.
Because the statute database is maintained primarily for legislative drafting purposes,
statutory changes are sometimes included in the statute database before they take effect.
If the source note at the end of a Section of the statutes includes a Public Act that has
not yet taken effect, the version of the law that is currently in effect may have already
been removed from the database and you should refer to that Public Act to see the changes
made to the current law.
(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.
|
|
(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.
|
|
(Source: P.A. 92-740, eff. 1-1-03.)
|
