How to form an LLC in Michigan
En Hispanic Entrepreneurs we list the steps of how form an LLC in Michigan. If you want to start a business in this city, it is essential that you fully know the procedures to successfully legalize it.
This type of company protects the personal property of the owner or owners, making it one of the most used. The Limited Liability Company has some tax advantages by not being liable for taxes on its profits.. It does not require residency, so it is a good option for those who are not citizens or permanent residents.
You have limited liability for business debts, there is no owner limit. Nor do you need annual meetings or a minute book. You can also access business loans. With all these benefits, it has become one of the most popular structures for small businesses.
How to form an LLC in Michigan
Register an LLC in the United States, And in Michigan it is relatively simple, you just have to complete the following steps:
1-Choose a name
Michigan state law requires that the names of these types of companies must contain the initials LLC or the words Limited Liability Company at the end. It has to be different from those of already registered companies.
Other than this it must be compared in the Michigan Department of Licensing and Regulatory Affairs database of corporate names. You can reserve the name in this unit for 6 months. It is done online or by mail.
If you choose to use a fictitious name (DBA) you must register with the Illinois Secretary of State.
2-Hire a registered agent
The Illinois Secretary of State requires the hiring of a registered agent to take responsibility for legal matters on behalf of the company. You must be a Michigan resident or a domestic or foreign business authorized to transact in the state.
3-Consign the articles of the organization
To form an LLC in Michigan you are required to submit the articles of organization to the Department of Licensing and Regulatory Affairs of the Michigan Office of Business Services. It can be online or by mail.
The articles must contain: name, address and purpose of the LLC, name and address of the registered agent. Also specify the duration of the LLC and whether it will be managed by managers or members.
4-Prepare an operating agreement
Although an LLC operating agreement is not required in Michigan, it is advisable to do so. This helps demonstrate that the business is a separate entity from its owners. and protect your personal assets.
The agreement consists of establishing in a contract who is the owner, which part owns and how it is managed. As well as the profits will be shared and taxes will be paid, among other details.
5-Request an EIN
An Employer Identification Number (EIN) must be obtained from the Internal Revenue Service (IRS) after the LLC is approved by the Secretary of State. To process it, the application is completed on the IRS website.
Local and state business licenses may need to be applied for depending on the location and type of business. If you have employees or will sell assets, it is necessary to register the LLC with the Michigan Department of the Treasury (DOT).
With the EIN, you can also proceed to open a business bank account, manage state and federal taxes, and hire employees.
6-Presentation of annual reports
In Michigan all LLCs are required to file an annual return with the Department of Licensing and Regulatory Affairs. The deadline is February 15 after the training year.