Why start a Michigan LLC?
There are many reasons that small businesses will register an LLC in Michigan. The first and foremost reason is the liability protection of your individual personal assets. When created and run correctly, LLCs are a completely separate legal entity from that of the individual owners, and helps to separate your personal assets from that of your business. LLCs are run similar to a sole proprietorship or a partnership, and are typically simpler to run and operate than a corporation.
Business purpose
The state of Michigan allows a "general purpose" to be used when filing the Articles of Organization. This purpose implies that the limited liability company formed for any lawful purpose allowed, except as otherwise prohibited by law. A "general purpose" allows for most Michigan LLCs to be setup without limiting the business purpose.
Tips on naming your Limited Liability Company
All Limited Liability Companies formed in the state of Michigan must end in either “Limited Liability Company” or its abbreviation “LLC”. The name of the LLC must be distinguishable from any other LLC or Corporation filed or reserved with the Secretary of States office. Differences such as punctuation and words like company, limited partnership, Limited Liability Company and all of their abbreviations at the end of the name will not be deemed distinguishable. The Secretary of State will also ignore differences in the use of spaces, capitalization, and/or special characters.
Forming a Foreign LLC in Michigan
An LLC that is organized outside of the state of Michigan is referred to as a "Foreign LLC" and should obtain a Certificate of Authority to transact business within the state.
Who manages a Michigan LLC?
Michigan defines "member" as an owner of the company, and unless the Articles of Organization state otherwise, the Michigan LLC will be "member managed." This implies that the owners are responsible for managing the day-to-day operations of the Michigan Limited Liability Company.
Michigan LLC Act
The Act established in Michigan for Limited Liability Companies is Michigan Limited Liability Company Act of 1993. This Act discusses the requirements and definitions of which LLCs will operate within the State of Michigan.
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