What is a Partnership?

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Business Law FAQ

Q.    What is a Partnership

A.    In Michigan, partnerships are defined and governed by the Michigan Uniform Partnership Act. A partnership is an association of two or more persons who carry on as co-owners of a business for profit. (MCL 449.6) Under Michigan law, the defining characteristic of a general partnership is that the partners are jointly and severally liable for each other’s debts. It is therefore, an entity form that should generally be avoided if possible.

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