Also, before suggestions are made to just get an umbrella insurance, I am also using LLC to create a partnership so need LLC not just for liability coverage. 

Here's his response:Michigan law defines real estate broker broadlyReal estate broker” means an individual, sole proprietorship, partnership, association, corporation, common law trust, or a combination of those entities who with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses, lists or offers or attempts to list, or negotiates the purchase or sale or exchange or mortgage of real estate, or negotiates for the construction of a building on real estate; who leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; who engages in property management as a whole or partial vocation; who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or who, as owner or otherwise, engages in the sale of real estate as a principal vocationMCLS § 339.2501The exemptions are pretty limited:This article does not apply to an individual, partnership, association, or corporation, who as owner or lessor or as attorney-in-fact acting under a duly executed and recorded power of attorney from the owner or lessor, or who has been appointed by a court, performs an act as a real estate broker or real estate salesperson with reference to property owned by it, unless performed as a principal vocation not through a licensed real estate brokerMCLS § 339.2503Essentially, if you are performing these services as a primary part of your occupation, Michigan law requires you to be licensed. 

What type of partnership are you looking for?  

You can buy a yield or value add deal based on the partnerships goals.

(It's 1,500 words long ^^ so might take a while to get through)The methods I mention in the post are methods I've used to create partnerships, mastermind groups, and connect with more experienced investors who I can turn to for advice.If you end up reading it, leave a comment and let me know what you think. 

I'm wondering if anyone could generously show some examples of forming partnership with contractors.

Standard disclaimers apply.]From a legal entity perspective, I would say you could structure this with a well drafted partnership agreement.

You will have developed a habit of investing; as well as learning and retaining useful real estate information without struggling.Bigger Pockets has various resources such as: ebooks, forums, blogs, webinars, podcasts (@James Wise was featured in # 127 How To Use A Partnership To Acquire (And Manage) 100+ Units, which is very informative.

I am certainly open to partnerships with other investors who do not have the time but I know that it also takes some work to find them.In terms of how much more I would add to feel safe, it'll probably be - baseline $100k and then an additional 20-25K to rehab and sell with a ceiling of 150-175K.

I understand with flipping you have to pay ordinary income taxes on the profit.Could anyone explain how taxes would be for a partnership, in which profits would be divided 50-50 in the following scenario: ==one partner (the funding partner) is already in the top income bracket and completely funding the deal, but is not active in the management of the flip.