A Michigan LLC is formed by foling the Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs Bureau of Commercial Services. LLC’s must list the name and physical address of their registered agent in Michigan. The registered agent must be available during normal business hours to accept legal and tax documents for the businesses’ behalf.

The LLC name must comply with Michigan law and include the words “Limited Liability Company”, “L.L.C.”, or “LLC”. The name must be distinguishable from other business entities registered with the Michigan Department of Licensing and Regulatory Affairs. A name can be reserved for up to six months by filing the Application for Reservation of Name (http://www.dleg.state.mi.us/dms/results.asp?docowner=BCSC&doccat=LLC&Search=Search) with the Michigan Department of Licensing and Regulatory Affairs Bureau of Commercial Services.

Michigan LLCs are required to have an agent to conduct legal affairs in the state. The agent can be a resident of Michigan, a corporation based in Michigan, or a foreign corporation with a certficate of authority to conduct business in Michigan.

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What is an LLC?

LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.

Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.

Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.

The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.

LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.

An LLC can be formed through the state business formation process or consulting with LegalZoom.

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