Determination of existence of partnership

In determining whether a partnership exists, the following rules shall apply: (1) Except as provided by Code Section 14-8-16 persons who are not partners as to each other are not partners as to third persons; (2) Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property, or part ownership does not of itself establish a partnership, whether such co-owners do or do not share any profits made by the use of the property; (3) The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived; (4) The receipt by a person of a share of the profits of a business is prima-facie evidence that he is a partner in the business; provided, however, that no such inference shall be drawn if profits were received in payment of the following, even though the amount of payment varies with the profits of the business: (A) A debt, whether by installments or otherwise; (B) Wages, salary, or other compensation to an employee or independent contractor; (C) Rent to a landlord; (D) An annuity or other payment to a surviving spouse or representative of a deceased partner; (E) Interest or other payment or charge on a loan; (F) Consideration for the sale of good will of a business or other property, whether by installments or otherwise. (Code 1981, § 14-8-7, enacted by Ga. L. 1984, p. 1439, § 1; Ga. L. 1994, p. 97, § 14.)