If you are starting a business, you may have an interest in forming it as a limited liability company. This business structure comes with tax and liability advantages. In order to form an LLC in Michigan, you must adhere to state requirements.
Michigan law has specific rules regarding the naming, starting and operating of an LLC.
Choose a name
According to Michigan law, the name of your business must be distinct from other LLCs, partnerships and corporations. It must include the abbreviation “LLC” or the words “Limited Liability Company.” The name of an LLC must not include the words “incorporated” or “corporation” or the abbreviations “inc.” or “corp.” If you plan to operate your LLC under another name, you must file a Certificate of Assumed Name.
Designate a resident agent
You must name a resident agent in the Articles of Organization. This individual or entity is responsible for receiving notices, documents and demands regarding the company. The resident agent can be one of the following:
- A Michigan resident.
- A Michigan corporation.
- A Michigan or foreign LLC authorized to conduct business in the state.
- A foreign corporation with a certificate of authority to conduct business in the state.
The resident agent must have a registered office, which is a physical street mailing address in Michigan.
Create An Operating Agreement
While Michigan does not formally require one, drafting an operating agreement can help set your business up for the future by clearly outlining your company structure and direction.
Submit Articles of Organization
You formally create an LLC by submitting Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs Bureau of Commercial Services. This document includes important details such as your business name, address and purpose.
Taxes
With a few exceptions, most businesses in Michigan are required to obtain an Employer Identification Number (frequently referred to as a Tax ID number) for tax purposes.
This is educational information and is not legal advice.
