Selecting the legal structure that best meets your needs is one of the most important decisions you must make when creating a business in Michigan. The Limited Liability Company (LLC) is one of the most well-liked corporate forms in the state. The liability protection of a corporation with the tax advantages of a sole proprietorship or partnership are combined in an LLC, a flexible company form. However, in Michigan, how long is an LLC valid?
The short answer is that Michigan LLCs do not have a set lifespan. Michigan LLCs are permitted to continue operating indefinitely, unlike some other states that mandate LLC dissolution after a specific number of years. To keep their status in good standing, LLCs must submit an annual report to the state and pay a fee. If the yearly report and fee are not submitted, the state may administratively dissolve the LLC.
In Michigan, an LLC is permitted to use a DBA, or “Doing Business As.” A DBA is a made-up name that a company uses in place of its actual name. Without having to establish a new legal entity, it enables an LLC to operate under a different name. You must submit a Certificate of Assumed Name to the county clerk’s office where your business is situated in Michigan in order to register a DBA.
In Michigan, an LLC is permitted to own another LLC. A parent-subsidiary connection exists in this situation. The subsidiary LLC is controlled by the parent LLC, which has the authority to act on its behalf. To be clear, the parent LLC is not liable for the obligations or liabilities of the subsidiary LLC because each LLC is an independent legal organization. Is Starting a Business in 2021 a Good Idea?
Although starting a business is always risky, it may also be profitable. Despite the difficulties the COVID-19 pandemic has brought, 2021 could be a fantastic year to launch a business in Michigan. The state offers resources for entrepreneurs and a business environment that is friendly to new businesses. The epidemic has also increased demand for home-based enterprises and internet services, which might be a terrific opportunity for anyone wishing to launch a new business. Does the State of Michigan Require Business Registration?
Yes, you must register your business with the state if you run a business in Michigan. Choosing a business structure, a name, registering for tax purposes with the Michigan Department of Treasury, and acquiring any necessary licenses and permits are all steps in the registration of a business in Michigan. Fines and legal repercussions may follow from failing to register your firm.
In conclusion, LLCs in Michigan are permitted to exist permanently as long as they submit an annual report and pay a fee to keep their status in good standing. An LLC may own another LLC and use a DBA, but each LLC is a distinct legal organization. Starting a business in 2021 can be a terrific opportunity, but it’s important to do so legally and by registering your company with the state.
Yes, in order to lawfully operate, the majority of businesses in Michigan must get a license or permission. However, according on the sort of business and the area, other licenses and permits might be needed. It is advised to inquire about the particular requirements for your company with the Michigan Department of Licensing and Regulatory Affairs.