# Minn. Stat. § 323A.0202: FORMATION OF PARTNERSHIP

> Minnesota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0202

## Section

- **Citation:** Minn. Stat. § 323A.0202
- **Heading:** FORMATION OF PARTNERSHIP
- **Jurisdiction:** Minnesota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MN Code / Part 300_323A / Chapter 323A / Section 323A.0202

## Text

(a) Except as otherwise provided in subsection (b), the 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.

(b) An association formed under a statute other than this chapter, a predecessor statute, or a comparable statute of another jurisdiction is not a partnership under this chapter.

(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.

## Nearby sections

- [Minn. Stat. § 323A.0101 § 323A.0101 DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0101.md)
- [Minn. Stat. § 323A.0102 § 323A.0102 KNOWLEDGE AND NOTICE.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0102.md)
- [Minn. Stat. § 323A.0103 § 323A.0103 EFFECT OF PARTNERSHIP AGREEMENT; NONWAIVABLE PROVISIONS.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0103.md)
- [Minn. Stat. § 323A.0104 § 323A.0104 SUPPLEMENTAL PRINCIPLES OF LAW.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0104.md)
- [Minn. Stat. § 323A.0105 § 323A.0105 EXECUTION, FILING, AND RECORDING OF STATEMENTS.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0105.md)
- [Minn. Stat. § 323A.0106 § 323A.0106 GOVERNING LAW.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0106.md)
- [Minn. Stat. § 323A.0107 § 323A.0107 PARTNERSHIP SUBJECT TO AMENDMENT OR REPEAL OF CHAPTER.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0107.md)
- [Minn. Stat. § 323A.0201 § 323A.0201 PARTNERSHIP AS ENTITY.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0201.md)
- [Minn. Stat. § 323A.0202 § 323A.0202 FORMATION OF PARTNERSHIP.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0202.md)
- [Minn. Stat. § 323A.0203 § 323A.0203 PARTNERSHIP PROPERTY.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0203.md)
- [Minn. Stat. § 323A.0204 § 323A.0204 WHEN PROPERTY IS PARTNERSHIP PROPERTY.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0204.md)
- [Minn. Stat. § 323A.0301 § 323A.0301 PARTNER AGENT OF PARTNERSHIP.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0301.md)
- [Minn. Stat. § 323A.0302 § 323A.0302 TRANSFER OF PARTNERSHIP PROPERTY.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0302.md)
- [Minn. Stat. § 323A.0303 § 323A.0303 STATEMENT OF PARTNERSHIP AUTHORITY.](https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0303.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MN_P300_323A_C323A_S323A.0202. Check the current official text before relying on it. Not legal advice.