Purchasing Resources for Michigan Corporation And Partnership Law

Michigan Corporation and Partnership Law

Choose wisely when incorporating under MI corporation law
By V.V. Beardsley, President Beardsley Consulting If you'd like to start a business in Michigan, you must understand the basics of Michigan corporation law. The structure of your Michigan corporation will be instrumental in the success of your business. It will affect your tax treatment, filing requirements, funding potential and liability obligations.
 

The ownership plans for your business entity determine how to incorporate in Michigan. A traditional corporation is useful to raise money with investors, or to allow ownership to employees in the form of shares. However, Michigan corporate law requires complex ongoing paperwork and will tax your business income on corporate and shareholder levels.

Registration under Michigan LLC laws is less complicated. Taxation occurs only on one level. The structure is simple, and can require only two people to incorporate. Under Michigan partnership law, a partnership is appropriate for business ventures that have a limited time-frame or a small number of people involved. Taxation benefits are similar to a Michigan LLC, in that there is no double taxation. The drawbacks include increased exposure to liability for the actions of the partnership.

The options to form a corporation in Michigan are:

1. A business corporation.

2. A limited liability corporation (Michigan LLC).

3. A limited partnership.

Choose what works under Michigan corporate law

The decision as to whether to form a corporation or partnership depends on your long-term goals. Ownership is easier to divide in Michigan corporations, while partnerships are not well-suited for growth or sale, and do not offer stocks. Taxation is different for both types of entities. And, finally, Michigan corporation registration, including Michigan partnership law, requires varying filing of paperwork and fees.
Try: FindLaw will guide you through picking the entity structure that works for you. If you need further advice, look for a site such as lawyers.com to find a Michigan attorney.

Make your Michigan corporation or Michigan LLC a reality

MI corporation law requires filing certain forms, as well as submitting fees. The filing may include articles of incorporation, or, for Michigan LLC registration, articles of organization. Fees will vary depending on the structure.
Try: Find the appropriate business entity form through the Department of Labor and Economic Growth's (DLEG) Document Management System, and confirm fees by checking the DLEG fee schedule. A Michigan corporation search using the DLEG search engine is useful to locate potential competitors.

Know the details of Michigan corporation and partnership law

You are required to abide by all Michigan rules and regulations with regard to Michigan incorporation, so review the related statutes carefully.
Try: Review the related codes and statutes of Michigan corporation law from DLEG. If you are concerned about following the law properly, engage a reputable incorporation firm such as ActiveFilings.