Wash. Court of Appeals published opinion — 323820.opn.pdf

Citation: Wash. Court of Appeals published opinion — 323820.opn.pdf
Jurisdiction: Washington (state)
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Original Source: https://www.courts.wa.gov/opinions/pdf/323820.opn.pdf ↗

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review. Sufficient evidence supports the commissioner's determinations. Calling a

business arrangement a partnership does not make it a partnership. For example, Dr.

Armand continued to retain control over billing patients. For income, Dr. Armand

received whatever was left over after he paid Drs. Loretta and Louise their 40 percent of

production and overhead expenses. Dr. Armand argues there is equal sharing of profits

because he too received 40 percent of his production. But his share is calculated

differently than Drs. Loretta and Louise and is not exact. Drs. Loretta and Louise did

not share losses. Drs. Loretta and Louise always took home 40 percent of their

production regardless of whether the patients actually paid their bills.

Notably, the dental practice registration remained unchanged with the

Department and the Washington Department of Revenue. If Drs. Loretta and Louise

were considered partners, they would have had an account at the Department because

the Department requires employers to report changes in owners and partners at the

same time the quarterly tax and wage report is due. WAC 192-310-010(2}(a}. The

Washington Department of Revenue requires an owner to obtain new registration and

license documents when there is a change in ownership. WAC 458-20-101(11}(a)(iii)

(stating a change in ownership occurs with the "addition of one or more partners where

the general partnership continues as a business organization and the change in the

composition of the partners is equal to or greater than fifty percent"). Instead, Dr.

Armand continued to report the income and expenses of the dental practice on his

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No. 32382-0-111
DeFelice v. Emp't Sec. Dep't