General Partnership is default form for businesses that are owned by more than one person.
UPA § 202(c)(3) – when persons receiving profits are NOT partners; Not partners if profits are received in payment:
1. of a debt by installments or otherwise;
2. for services as an independent contractor or of wages or other compensation to an employee;
3. of rent;
4. of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a
deceased or retired partner;
5. 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
6. for the sale of the goodwill of a business or other property by installments or otherwise.
We have located some similar legal questions and legal question categories. Check out these challenging questions that askquestions about Partnerships and are similar to What is a default partnership. Also, we have included a list of some of our more popular legal question categories. These categories are based on what everyone is asking and answering.