A single-member LLC Michigan can be formed under state laws, as long as the owner follows all requirements for the formation of a business. This type of limited liability company has one member who is shielded from personal liability for business debts and obligations.

Naming Your LLC

When forming a single-member LLC in the state of Michigan, the first step is coming up with a business name. The name you select must include one of the terms that identifies this type of legal structure. Examples include limited liability company and LLC. In Michigan, you must use a name that is unique from any other existing business in the state, including other business entity types like partnerships and corporations. Additionally, you cannot choose a name that could potentially mislead customers about what your business offers.

Preparing Articles of Organization

Before the state will recognize your LLC, you also need to draft the articles of organization. You can fill out the standard form found on the website of the Michigan Department of Licensing and Regulatory Affairs. Using this template is easier than writing your own articles of organization.

In the articles of organization, you must include some required information:

  • Name of the LLC.
  • A clause that states the LLC will engage in legal business activities.
  • The name and address of your registered agent.

The state of Michigan doesn't impose limits on how long a single-member LLC can operate. However, if the owner chooses to include a lifespan and end date of the LLC, both should be included in the articles of organization.

Michigan LLC Formation

To form an LLC in Michigan, you must have one owner, called a member. No age or residency requirements exist on the member of an LLC. In order to register the business, you must file the articles of organization with the Secretary of State's office.

In your articles of organization, you should include:

  • The name and address of each member.
  • The name of the business.
  • The address of the business.
  • The name and address of the assigned registered agent.

The state of Michigan recognizes LLCs with at least one organizer, called its member. Although it's recommended, you don't have to include the name of each member in your articles of organization.

Registered Office & Agent

Each LLC registered in Michigan is required to appoint a registered agent who holds the authority to accept any legal documents on your company's behalf. This registered agent can be a business entity that is authorized to do business or registered in Michigan or a person residing in the state. In a single-member LLC, the single member often serves as the registered agent for the business. When including the required information about your LLC, you should include your office or home address.

To meet the state requirements, the registered agent must have a physical address in Michigan and be available during regular business hours at that address to receive any tax and legal documents for the LLC. Make sure to include either a home or business address as the office of the registered agent. It's not required for the single member of the LLC to serve as the registered agent. If you'd rather not, you can hire a company to provide this service for your business.

A registered agent can be:

  • A foreign entity.
  • A domestic entity.
  • An individual resident.

As long as the entity is registered to conduct business in the state or the individual resides in the state, they are authorized to serve as a registered agent. Although a single member can be the registered agent, the LLC itself can't serve as its own registered agent.

Michigan LLC Post-Filing Requirements

After forming an LLC, the member is required to file a report by February 15 each year. This deadline is several months earlier than the deadline in other states, which is April 15. In order to file the report, you must also pay a $25 filing fee. When reporting business profits and losses, you will need to include these numbers on your personal 1040 tax return form on Schedule C.

An LLC must also obtain a federal tax identification number, also called the employer identification number or EIN. The IRS assigns this number to the LLC. This number is like a social security number for a person. It is necessary for hiring employees or opening a business bank account.

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