Limited liability companies offer unique advantages for Michigan business owners looking for an inexpensive and flexible way to structure their company.
When it comes to forming a business in Michigan, owners have several options. One type of business structure that has grown in popularity is the limited liability company (“LLC”). An LLC has similarities to a sole proprietorship, partnership, and even a corporation, but offers unique advantages as well. LLCs are especially popular with those looking to open a new small business or transition from a sole proprietorship or partnership structure.
Advantages of Forming an LLC in Michigan
To create an LLC in Michigan, Articles of Organization must be filed with the State of Michigan, Department of Licensing and Regulatory Affairs. A non-refundable fee is required to be paid at the time of filing. The LLC should also have an Operating Agreement that governs the conduct of the business by its members and which governs the relationship between the members. This can be created with the help of an attorney experienced in business law.
Forming an LLC is generally less expensive than forming a corporation, particularly where there is only one member. In addition to offering limited liability to its members, other advantages include unique tax options and benefits, fewer governing formalities, and greater management/operational flexibility when compared to a corporation. Also, there is no limit on the number of members that are included in a limited liability company.
These advantages are the reasons why many businesses are being set up as limited liability companies. However, as with any aspect of a business venture, it is important to research all of your options and to consult with an experienced business law attorney to weigh the advantages and disadvantages of each structure.
Make Informed Decisions with a Business Law Attorney
If you are considering opening a business in Michigan or would like to transition from an existing sole proprietorship or limited partnership, it is important to seek help from an attorney experienced in business law. At Seglund Gabe Quinn Elowsky & Pawlak, PLC, we can help you understand your options, discuss your goals and vision for the company, and search out the best fit for your company’s needs.
Michigan Legal Solutions
Attorneys at Seglund Gabe Quinn Elowsky & Pawlak, PLC have helped area entrepreneurs and business owners build a solid legal foundation for long term success. Our attorneys are trained and experienced in business law, and understand that businesses built on a strong legal foundation have a better chance for long term growth and success. Many of the business relationships that our firm has established have lasted more than a quarter of a century, thanks to the skill and determination of our business attorneys who are dedicated to the success of our clients’ enterprises. Let us help you live out your dreams by being the law firm you call on when you start you own business or when your business needs assistance.
Gerry A. Pawlak
Michigan Legal Solutions
28345 Beck Road, Suite 401
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039