The main reason most companies form a Limited Liability Company in Michigan is to safeguard their personal assets. By forming an Limited Liability Company(LLC) in Michigan, you are free to conduct your business without worrying that you might lose a home, a car, or any of your personal savings because of a business liability. This is, in fact, one of the best moves you can make to protect your personal property when you own your own business in Michigan. Our partner is the leading incorporation service provider with more than 100 years of experience servicing the entrepreneur and small business community. Following are steps, in simple words, guidelines for form an LLC in Michigan. You should also read the general section on forming an LLC for information that is applicable in any state.
Forming an LLC in Michigan
1. Select a Business name
First select a business name and check availability. Michigan law requires that an LLC name contain the words "limited liability company" or the abbreviation "L.L.C." or "L.C.," with or without periods or other punctuation. In addition, your business name may not include the words "corporation" or "incorporated" or the abbreviation "corp." or "inc.," and must be distinguishable from other names on file with the state. Select a business name is very important for formation of any company or business.
2. Articles of organization
If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in your articles of organization. For general information on articles of organization, see the Articles of Organization page. The filing fee is $50. The Department of Labor & Economic Growth website provides a simple, fill-in-the-blank form for the articles of organization.
Michigan does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no technique for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital assistance are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state.
4. Bank account
It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles.
5. Necessary Registration
Whenever you hire an employee in Michigan, you must inform both the IRS and the State of Michigan. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the Michigan New Hire Reporting Center website. Request an Employer Identification Number from the IRS. This can be done via its online application. There is no filing fee. If you have an employee or employees in Michigan, you need to register for Michigan business taxes using the Business Tax e-Registration website. There, you will find forms and instructions for all business taxes. You can find more information on this process in the Michigan Business Taxes Registration Booklet. If you have three or more employees in Michigan or have employed anyone for at least thirty-five hours per week for thirteen or more weeks, you must carry workers' compensation insurance. If you are not required to have workers' compensation and you choose not to do so, you must get a certificate of exemption from the Insurance Division. As a business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
Maintaining an LLC in Michigan
Michigan LLCs must file an Annual Statement with the Department of Labor & Economic Growth every year before February 15. The filing fee is approximately $30, and you can file the form online via the FILEonline Service. If the LLC is formed after September 30 in a particular year, the Annual Statement is not required on the first February 15 following formation. Michigan requires certain documents to be kept at an LLC's principal place of business.