Michigan has enacted the Michigan Limited Liability Company Act to regulate the creation and operation of limited liability companies (“LLC”) within Michigan. A business owner may choose to operate his or her business as an LLC because the LLC business entity provides the benefits of both partnerships and corporations.
In Michigan, a LLC is required to identify its place of business, all members and provide the name and location of a registered agent. This information is required by the state for tax and process of service purposes. Failure to provide the proper information can result in a LLC losing its registration and therefore the loss of applicable liability and tax benefits.
Michigan has established the Department of Licensing and Regulatory Affairs (LARA) to oversee the licensing and regulation of businesses within the state. Registration and ongoing filing requirements are done on the LARA website. The LARA website is also open to the public to conduct research on LLCs registered in the state.
A LLC must keep at its registered office or principal place of business in Michigan the following:
There are two major benefits to the LLC business structure: (1) limited liability to members and (2) “pass-through” taxation.
The advantages of the LLC business formation are generally significant enough to outweigh the disadvantages. However, business owners will want to understand that an LLC requires significant initial and ongoing compliance obligations. This is especially true where there are multiple members to the LLC. Each member, may owe the other members certain duties and there is often significant infighting that occurs with LLCs.
If you have questions or concerns about the formation or operation of your LLC, then contact an experienced Michigan business lawyer today.
Last Modified: 06-14-2018 05:21 PM PDTLaw Library Disclaimer
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