Form a Partnership in Michigan

Everything you need to know about forming a Partnership in Michigan. Filing fees, requirements, timeline, and step-by-step guidance.

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$10
Filing Fee
5-10 business days
Processing Time
Required
Registered Agent

How to File

1

Choose Your Partnership Type

Decide between a General Partnership (GP), Limited Partnership (LP), or Limited Liability Partnership (LLP). General partnerships require no state filing, while LPs and LLPs must register with Michigan LARA.

1-2 hours

2

Select and Verify a Partnership Name

Choose a unique business name and verify its availability using the Michigan LARA business entity search at michigan.gov/lara. Limited partnerships must include 'Limited Partnership' or 'L.P.' in the name.

30 minutes

3

Draft a Partnership Agreement

Although not legally required in Michigan, a written partnership agreement is strongly recommended to outline each partner's rights, responsibilities, profit-sharing ratios, and procedures for dissolution or partner changes.

2-5 hours

4

Designate a Registered Agent

Appoint a registered agent with a physical Michigan street address to receive official legal and government correspondence on behalf of the partnership. The agent must be available during normal business hours.

30 minutes

What's Next After Filing

Once your Partnership is officially formed, you'll want to complete these important steps:

  • File Formation Documents with LARAFor Limited Partnerships, file a Certificate of Limited Partnership (Form 402) with Michigan LARA either online or by mail with the $10 filing fee. General partnerships do not file with the state but may file an assumed name certificate with their county clerk.
  • Obtain an EIN and Register for TaxesApply for a Federal Employer Identification Number (EIN) through the IRS website at no cost. Register with the Michigan Department of Treasury for state tax obligations, including sales tax or employer withholding if applicable.
  • Obtain Licenses, Permits, and Open a Bank AccountSecure any required local, county, or state business licenses or professional permits relevant to your industry. Open a dedicated business bank account to keep partnership finances separate from personal funds.

Advantages

  • Simple and inexpensive to form, especially general partnerships which require no state registration in Michigan
  • Pass-through taxation avoids double taxation — profits and losses flow directly to partners' personal tax returns
  • Flexible management structure with no required board of directors or formal meeting requirements
  • Limited partners in an LP enjoy liability protection for their personal assets beyond their investment contribution

Considerations

  • General partners face unlimited personal liability for business debts, lawsuits, and obligations of the partnership
  • Partnerships dissolve automatically upon the death, withdrawal, or bankruptcy of a general partner unless the agreement states otherwise
  • Limited partnerships involve more complexity and formality than general partnerships, including state registration and annual reporting
  • Raising capital can be more difficult than corporations, as partnerships cannot issue stock

Annual Obligations

Annual Report Fee:$25
Report Due:February 15
Michigan Limited Partnerships must file an Annual Report with LARA by February 15 each year; the filing fee is $25. General Partnerships in Michigan have no state annual report requirement. Partnerships are pass-through entities for federal and state tax purposes — partners report their share of income on their individual Michigan income tax returns. Michigan does not impose a separate franchise tax on partnerships. If the partnership has employees or collects sales tax, ongoing filings with the Michigan Department of Treasury are required.
Last verified: July 2026Source

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