Form A Michigan Limited Liability Company
Learn about the tax and asset protection benefits of a Michigan LLC. Quick to set up and easy to run, with low annual filing fees, your Michigan limited liability company is a great company formation strategy for business developers and entrepreneurs.
Form an LLC for only $139 - Michigan LLC Information - LLC Links & Articles
Advantages Of Your Michigan LLC
* Benefit - Unique Corporate Tax Exemption. A key benefit to forming an LLC in Michigan or any other state is that you and your future members obtain the tax advantages of your LLC Michigan enterprise under state and federal law, where your LLC corporation is viewed as a "pass through" entity.
No LLC corporation taxes apply, however taxes on profits or share of losses passes directly to your LLC Michigan members.
The only circumstances where the LLC corporation tax privileges are rescinded is in the event that court judgments or failure to perform the minimum statutory corporate governance standards occur and where the IRS now re-classifies your LLC Michigan as a proper corporation (like an S corporation or C corporation), thus liable for corporate earnings taxes.
* Benefit - Easy To Run And Maintain Compliance. LLC formation reflects your preference for operational flexibility and well as simplicity in the matter of corporate governance matters. For example, your Michigan LLC can attract an unlimited number of LLC member-owners including persons or corporations or trusts or pensions or even other LLC corporation entities for purposes of establishing initial capitalization, unlike the comparable Subchapter S organization form which is limited to 75 shareholders.
Your LLC corporation can secure additional financing and credit facilities, just like any corporation, however cannot publicly sell membership ownership interests unless your LLC Michigan is converted into a C corporation.
Michigan LLC corporate governance for your is also streamlined, with no statutory requirement for annual meetings and minutes, unlike those same requirements that make the Subchapter S and C corporations considerably more complex to operate than a LLC formation.
* Active Michigan Economy. Your LLC Michigan business entity addresses the state requirement for establishing a legal form of LLC corporation, along with a legally recognized operating address which can be your operating offices or the offices of your LLC formation registered agent.
When business developers like yourself establish a LLC in Michigan, or consider alternative forms of organization, then you'll be receiving direct support from the offices of the Secretary of State.
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