Michigan PLLC: Everything You Need to Know
A Michigan PLLC refers to any limited liability company that is formed by founders who intend to provide licensed professional services in the state of Michigan.3 min read
A Michigan PLLC refers to any limited liability company that is formed by founders who intend to provide licensed professional services in the state of Michigan.
Any licensed professional in the state of Michigan can structure their business as a Michigan PLLC. This provides protection from multiple types of liability. Structuring your business as a PLLC may also allow you to enjoy various tax advantages that you wouldn't get if you had developed your business with a different structure.
One advantage of structuring your business as a PLLC is that PLLCs protect the individual owners from claims for most types of personal injuries and financial debts.
Michigan law often uses the terms "professional service limited liability company" and "professional limited liability company" interchangeably.
In general, any individual that state law requires to have legal authorization in the form of a Michigan license before they are allowed to provide professional services is eligible to create a Michigan PLLC.
A "licensed person" refers to an individual who is legally authorized or licensed to practice a professional service by a department, court, commission, board, a state agency, or any other jurisdiction. A PLLC can be considered a licensed person if all the managers and members are also licensed persons.
A PLLC is able to invest its funds in mortgages, real estate, bonds, stocks, and other forms of investments. A PLLC can also own personal or real property needed for providing professional services.
A PLLC is able to become a partner for partnerships according to §§ 449.1 to 449.43 of the Compiled Laws of Michigan. If the partnership and the PLLC provide the same professional services, the PLLC is able to become a partner. A PLLC is also able to become a manager or member of another PLLC.
What is a Professional Service?
According to Michigan's LLC Act, the following professionals can perform professional services:
- Certified public accountants
The term professional service refers to any form of personal service provided to the public that requires that the professional providing the service obtain a license or another form of legal authorization.
The state of Michigan permits professionals like attorneys, accountants, and physicians to create professional limited liability companies (PLLC).
How Do I Form a Michigan PLLC?
In order to form a Michigan PLLC, every professional member of your company will need to have a state license for rendering professional services.
Refer to the state licensing board that deals with your profession to determine whether prior approval is needed. If prior approval is needed, you will need to obtain a set of documents indicating this approval.
You must file the Articles of Organization with the LARA to form a PLLC in Michigan. The Articles of Organization should include details about the professional services you want your PLLC to provide to customers.
One or more professionals with an appropriate license can organize and become owners of a PLLC.
The Articles of Organization need to state that the company was formed to provide certain professional services.
Articles of Organization for PLLCs
The format of the form is a fillable PDF in which you can easily type in all of the required information. However, after typing in all of the information, you will need to print the form out to sign it.
The filing fee for the PLLC articles of organization is $50. The articles of organization can be filed by mail or email.
Michigan requires that the name of a PLLC contain an abbreviation of "professional limited liability company" to indicate that the business is a PLLC. Abbreviations can contain periods and other punctuation but it is not a requirement.
Service and Membership Restrictions
Michigan PLLCs are able to provide professional services in several professions as long as the combination of professions is not prohibited by state law. To offer professional services corresponding to more than one profession, there must be one member or manager with a relevant license for each professional service provided.
If you need help with Michigan PLLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.