TN 37 (04-24)

RS 01802.320 Contributions of Capital or Services From Each Partner — Operating Policy

Each partner must contribute to the partnership. Capital contribution of each need not be equal. One partner may contribute only services, repute, or expertise to the partnership and another, only capital. In this case, other elements should be considered to see if a partnership exists.

Some businesses require very little capital to commence operations. Contributions must be made in other forms, such as labor, or use of land, buildings or equipment.

In spousal businesses, consider that contributions from family funds or family property are joint contributions, in the absence of evidence to the contrary.