If you’re a Michigan business owner who has chosen to expand your limited liability company (LLC), you might not know where to start. It takes many procedures to add a member to your LLC, including revising your bylaws and acquiring a new Michigan corporate ID number. This post will explain how to add a member to your Michigan LLC and provide answers to some relevant questions.
Review your Operating Agreement as Step One
It is crucial to check your operating agreement to make sure that new members can be added before appointing someone to your LLC. You must first change your operating agreement if it does not already address the addition of new members.
You must get the new member’s permission to join your LLC after confirming that your operating agreement permits additional members. They can consent to this by signing a different membership agreement or a modification to the operating agreement.
The next step is to submit amended articles of incorporation. You must submit modified articles of organization to the Michigan Department of Licensing and Regulatory Affairs (LARA) after getting the approval of the new member. The new member’s details, including name, address, and percentage of LLC ownership, should be included in the updated articles of organization. Additionally, a $50 filing fee is required.
You must get a new Michigan corporate ID number if you are adding a new member to your LLC. You can do this by submitting a fresh Form 518 from the Michigan Department of Treasury to LARA. You must fill out this form with details about your LLC, including its name and address as well as the names and addresses of all of its members. Getting a Michigan corporate ID number is free of charge.
In Michigan, changing your LLC’s ownership is done in a manner akin to adding a new member. You must have the departing member’s approval before amending the articles of organization and submitting them to LARA. The articles of organization should no longer contain information on the departing member, and the ownership percentages of the remaining members should be modified to reflect this. Obtaining a Copies of Your Michigan Articles of Incorporation
Contact the Corporations, Securities & Commercial Licensing Bureau of LARA if you require a copy of your articles of incorporation in Michigan. A certified copy will cost you $10. Corporate ID number and CID number for Michigan Your LLC will have a special identification number that was given to it by the Michigan Department of Treasury. This number is needed to file state tax returns and is used to tax-adequately identify your LLC. The Michigan Department of Licensing and Regulatory Affairs uses a similar identification called a Michigan CID number to identify your LLC for licensing and regulatory purposes.
The four different legal forms of businesses are corporations, partnerships, limited liability companies (LLCs), and sole proprietorships.