Congratulations! You are reading this article because you have decided to begin the journey of business ownership.
Congratulations! You are reading this article because you have decided to begin the journey of business ownership. By this point you have researched the type of legal entity you need for your business or someone has advised you to form a Limited Liability Company (LLC). That’s great, but now what!
This article will walk you through the steps on how to form an LLC or PLLC in the State of Michigan. This process is very similar in other states and if you can follow along here, you will be able to navigate the filing process for other states.
How to Form an LLC in Michigan
Steps:
- Determine the State you want to file your LLC in and locate that State’s filing website.
- For the State of Michigan, the website is https://www.michigan.gov/lara
- Decide the Legal Entity Type needed for your business. Below are ‘entity type’ descriptions from the SOM website. Again, for this example we are walking through how to form a Professional Limited Liability Company (PLLC).
- After you decide the legal entity type needed for your business, search the ‘name’ you want your business to be and see if it is available. https://cofs.lara.state.mi.us/SearchApi/Search/Search
- Once you have Confirmed the Business name has not used, begin the filling process for the LLC or also called filing the ‘Articles of Organization’. https://cofs.lara.state.mi.us/corpweb/LoginSystem/ListNewFilings.aspx?FilingMethod=I
- Begin filling out the following Information. https://cofs.lara.state.mi.us/corpweb/FilingForms/0402M73.ASPX
*Typically, it is in perpetuity.
* What is a registered agent?
A registered agent is the person and address for the service of key documents. Many people will use a Law office as their agent. You can appoint yourself. The main reason someone appoints a Law office as the registered agent is to add a layer of privacy to your personal residence. Remember forming an LLC is public information and anyone can search and review your corporate documents filed with the State.
Once you have completed these steps, make sure to review the information before submitting. After filing the forms online, you will receive a State ID number for your business. This is different from the Federal EIN or Employer Identification Number provided by the IRS. To open a Business Bank Account, the Bank will almost aways require a Federal EIN.
Along with filing for your Federal EIN, it might also be required to create an Operating Agreement in your State. There is only a hand full of States that require businesses to have an Operating Agreement. Two prominent states that require an LLC to have an Operating Agreement on file are California and New York. Michigan does not. An Operating is a good idea to have because it will outline members protection from personal liability to the LLC. The Operating Agreement will also put verbal agreements into writing. Further, an Operating Agreement will help you avoid your LLC defaulting to the State rules, which can be less specific.
David Oesterle PLLC is not rendering legal, accounting, or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances, and current law.
