Sec. 152.052.  RULES FOR DETERMINING IF PARTNERSHIP IS CREATED.  (a)  Factors indicating that persons have created a partnership include the persons':
(1)  receipt or right to receive a share of profits of the business;
(2)  expression of an intent to be partners in the business;
(3)  participation or right to participate in control of the business;
(4)  agreement to share or sharing:
(A)  losses of the business;  or
(B)  liability for claims by third parties against the business;  and
(5)  agreement to contribute or contributing money or property to the business.
(b)  One of the following circumstances, by itself, does not indicate that a person is a partner in the business:
(1)  the receipt or right to receive a share of profits as payment:
(A)  of a debt, including repayment by installments;
(B)  of wages or other compensation to an employee or independent contractor;
(C)  of rent;
(D)  to a former partner, surviving spouse or representative of a deceased or disabled partner, or transferee of a partnership interest;
(E)  of interest or other charge on a loan, regardless of whether the amount varies with the profits of the business, including a direct or indirect present or future ownership interest in collateral or rights to income, proceeds, or increase in value derived from collateral;  or
(F)  of consideration for the sale of a business or other property, including payment by installments;
(2)  co-ownership of property, regardless of whether the co-ownership:
(A)  is a joint tenancy, tenancy in common, tenancy by the entirety, joint property, community property, or part ownership;  or
(B)  is combined with sharing of profits from the property;
(3)  the right to share or sharing gross returns or revenues, regardless of whether the persons sharing the gross returns or revenues have a common or joint interest in the property from which the returns or revenues are derived;  or
(4)  ownership of mineral property under a joint operating agreement.
(c)  An agreement by the owners of a business to share losses is not necessary to create a partnership.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.