Forming an LLC in Michigan
by
Bethany K. Laurence, J.D.
How to form an LLC in Michigan.
"LLC" stands for limited liability company, a legal ownership structure similar to a corporation. Like a corporation, an LLC protects its owners from being personally liable for business debts. (In contrast, when you operate as a sole proprietor or a partnership, you are personally responsible for debts of the business.)
Setting up an LLC in Michigan requires 2 short steps:
1. Choose a name for your LLC.
The name of your business cannot be the same as the name of another business entity on file with the Bureau of Commercial Services. To see if your proposed name is unique, you can search Michigan’s name database.
In Michigan your LLC name must contain the words "Limited Liability Company" or the abbreviation "LLC," "LC," "L.L.C.," or "L.C."
2. File the formation document.
In Michigan the formation document is called the Articles of Organization. Prepare and file the Articles of Organization with the Bureau of Commercial Services. The Articles of Organization should include your LLC’s name, its purpose, its address, and the name and address of your registered agent.
For help filing this document with the state of Michigan, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo) or Nolo’s software LLC Maker. Or, to form your LLC online right now, use our online LLC formation service.
That’s it! That’s all it takes to become an LLC in Michigan.
Operating Your LLC
Though not legally required, you should also create an LLC operating agreement that will guide the LLC owners in operating the business (much like a partnership agreement or corporate bylaws). For help creating an LLC operating agreement, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo) or Nolo’s software LLC Maker. This document does not need to be filed with the Bureau of Commercial Services.
To retain your LLC’s status as a separate entity, LLC members must observe certain formalities, such as keeping detailed financial records and recording minutes of major decisions. For more information, as well as minutes forms, consent forms, and over 80 resolutions, see Your Limited Liability Company: An Operating Manual, by Anthony Mancuso (Nolo).
Last updated on 11/16/07.
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