June 8, 2008 by admin

1110. What factors indicate a valid partnership?

The following factors help establish whether your business is conducted as a partnership:

1. Copies of any written agreements entered into by the parties or statements of the parties as to the terms of the arrangement;

2. Copies of partnership income tax returns on which the business income was reported;

3. Corroboration from the other partner(s); and

4. Statements from disinterested third parties, such as suppliers, wholesalers, customers, local business people, etc., who are familiar with the manner in which your business was conducted.

Last Revised: March, 2001