If you are thinking about starting a new business in Michigan, you are probably asking the same questions that every new business owner asks. Should I form a limited liability company? Should I form a corporation? If I form a corporation, what are the benefits of a C corporation as opposed to an S corporation? And, if I do decide to incorporate in Michigan, what is the difference between a C corporation and an S corporation? Regardless of the business structure you choose, if you are starting a new business it is wise to take steps to limit your personal liability and consider all of the tax implications of your decision.
When entrepreneurs form a new businesses, they sometimes fail to take appropriate steps to limit the personal liability of the owners and they sometimes fail to consider the tax consequences of their decision. If you have decided to form a limited liability company, Articles of Organization must be filed with the State of Michigan’s Department of Licensing and Regulatory Affairs (LARA), but your new business should also have an Operating Agreement. If a corporation is best for your new business in Michigan, Articles of Incorporation must be filed with LARA but your new corporation should have Bylaws and take other steps to ensure that your business is getting off on the right foot from a legal perspective.
If you are considering the formation of a Michigan limited liability company or a Michigan corporation, Inosencio Fisk is eager to assist you with this process.