Making the Mos of Michigan Corporation and Partnership Law

Protect your assets with Michigan corporate law

The key to making the most of Michigan corporation and partnership law is the decision to incorporate your business. A corporation affects your ability to gain capital, controls the amount of debt you assume and determines your tax obligations. However, these advantages must be balanced against the additional taxes your business will incur.

Michigan partnership law makes a partnership subject only to personal income tax, unlike a corporation. On the other hand, business partners may be held responsible for business debts.

There are several options for forming a company under MI corporate law. These include:

1. Michigan corporations as a profit or non-profit corporation. An S corporation (S-corp) is taxed under Subchapter S of the Internal Revenue Code which generally does not include income taxes.

2. A Michigan limited liability company (LLC). This is a hybrid business entity that shares the characteristics of both a corporation and partnership. It pays incomes taxes and is more suitable for a small business with one owner.

3. A Michigan limited partnership. This type of partnership has limited partners in addition to general partners.

 

Determine the type of corporation that best suits your business under corporation law in Michigan

The most important factors to consider are the personal liability obligations and tax implications. You should also familiarize yourself with the operating requirements and reporting regulations.
Try: The Michigan website has a page dedicated to starting a business in Michigan that includes a guide and FAQ. The Michigan Small Business & Technology Development Center offers tools, financing options and counseling for new business owners.

Find an attorney that specializes in Michigan corporation and partnership law

Incorporating in Michigan must comply with the disclosure, operating and reporting requirements. Michigan corporation law specifies these requirements in detail.
Try: Bassey and Selesko in Southfield has specific expertise in corporate law including business organization. Currie Kendall is located in Midland and offers legal services to start your business including incorporation.

Find sites to help you form a corporation in Michigan

You must file the registration forms and pay the associated fees as required by Michigan corporation law in order to perform Michigan LLC registration. You may also need to file Articles of Incorporation, depending on the type of corporation you decide to register. These sites frequently have a Michigan corporation search capability to ensure your company's name is unique.
Try: Ceoready.com specializes in forming businesses in Michigan and also provides a comparison of the different business types. Michigan LLC Formation and Resident Agent Services provides a detailed description of the steps needed to form a corporation or LLC in Michigan.

 

• Michigan corporation law requires annual fees and filings to maintain your corporation. Corporations are automatically C-corps unless they specifically register as S-corps with the primary difference being the way they are taxed. One person may frequently hold more than one position in these corporations and many if not all shareholders are also directors in a small corporation.

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