PARRIS N. GLENDENING, Governor

Ch. 654

SUBTITLE 2. NATURE OF PARTNERSHIP.
9-201. PARTNERSHIP AS ENTITY.

A PARTNERSHIP IS AN ENTITY DISTINCT FROM ITS PARTNERS.
9-202. FORMATION OF PARTNERSHIP.

(A)     EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (C), 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)     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)     AN UNINCORPORATED ASSOCIATION OR ENTITY CREATED UNDER A LAW
OTHER THAN THE LAWS DESCRIBED IN SUBSECTION (B) IS NOT A PARTNERSHIP.

(D)     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;

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