The first step in creating an LLC is naming your company. Your company name must contain the phrase “limited liability company” or a related acronym, such as “LLC.” Furthermore, your name cannot be the same as that of another company that has registered to do business in Michigan. On the website of the Michigan Secretary of State, you can determine whether your selected name is available.
The second step is to select a registered agent. A registered agent is a person or firm that accepts legal paperwork on behalf of your business and is required for every Michigan LLC. Your registered agent must be present during regular business hours and have a physical address in Michigan. You have the option of designating yourself as the registered agent or working with a reputable registered agent firm.
Step 3: Submit Articles of Incorporation You must submit Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs (LARA) in order to formally incorporate your LLC. Your LLC’s name, registered agent information, and the names and addresses of each member and management must all be listed in the Articles of Organization. The cost to file your articles of organization is $50, and you can do it online or by mail.
Create an operating agreement in step four. An operating agreement for your LLC is an excellent idea even though it is not required by Michigan law. The ownership and management structure of your company, as well as the policies and guidelines that control it, are described in an operating agreement, a legal document. This agreement aids in avoiding misunderstandings and conflicts among members and can assist safeguard the limited liability status of your LLC.
The process of adding a member to your Michigan LLC is rather straightforward. The name and address of the new member must be added to your Articles of Organization through a filing. All members must sign the amendment before it can be submitted to the Michigan Secretary of State. A $25 filing fee is required for each amendment.
Finally, the goal of your company must be stated in Article 2 of your LLC’s Articles of Organization. The nature of your company and the goods or services you offer should be summarised in this section. The purpose statement needs to be both general and particular in order to adequately describe your company’s operations while also allowing it to engage in a wide range of activities.
In conclusion, creating an LLC in Michigan is a simple process with lots of advantages for business owners. You can position your company for success by adhering to these guidelines and seeking the advice of a business attorney or other qualified provider.
A limited liability company (LLC) in Michigan’s ownership and management structure is described in a legal document called an operating agreement. It lays forth the guidelines and processes for managing the LLC, including the roles and responsibilities of the members, the division of profits and losses, and the process for dissolving the LLC. In Michigan, having an operating agreement is not needed by law, but it is strongly advised because it can assist avoid conflicts amongst members and give clarity on the company’s activities.