June 8, 2008 by admin

1108. What factors indicate a partnership or joint venture?

The following factors indicate a partnership or joint venture:

1. An intent on the part of two or more people to join together in good faith to carry on a trade or business;

2. Contribution of capital or services to the business by each party;

3. A sharing of the right to participate in management decisions and other responsibilities;

4. A sharing in the profits and risk of loss in accordance with the parties' agreement; and

5. Neither person is an employee of the other.

All of these basic factors must be present for an arrangement to be considered a partnership.

Last Revised: March, 2001