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Some states require that limited liability companies be owned by at least two persons. However, in Michigan, the law allows for an LLC to be owned by a single person. There can be some creativity when it comes to owning an LLC.
Does a single-member LLC need an operating agreement in Michigan?
Michigan does not require you to submit an Operating Agreement to form your LLC. However, it is important for every LLC to have an Operating Agreement, establishing the rules and structure of the business.
Does a single owner LLC need an operating agreement?
Yes. Even a single-member LLC needs an operating agreement.
How to create an operating agreement for a single-member LLC?
What To Include in a Single-Member LLC Operating Agreement Name of LLC. Principal Place of Business. State of Organization/Formation. Registered Office and Registered Agent. Operating the LLC in Another State (Foreign LLC) Duration of LLC. Purpose of LLC. Powers of LLC.
Why should an LLC with only one member still have an operating agreement?
Even though a single-member LLC might seem straightforward, the benefits of having an operating agreement cannot be overstated. This essential document provides legal protection, helps maintain limited liability, and ensures that your business is operated ing to your preferences rather than default state rules.
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Here are the basic steps youll need to take to start a limited liability company (LLC) in Michigan. Choose a Name for Your Michigan LLC. Appoint a Registered Agent for Your Michigan LLC. File Articles of Organization With LARA. Prepare an Operating Agreement. Get an EIN Comply With Tax and Regulatory Requirements.
Is an operating agreement required for an LLC in Michigan?
There is no state law in Michigan that requires LLCs to have an operating agreement. However, if you dont have one, your LLC will automatically be governed by the Michigan Limited Liability Company Act.
Related links
Michigan Limited Liability Company Act
What is the difference between a single-member LLC and a multi-member LLC? A single-member LLC has only one owner, while a multi-member LLC has two or more
LICENSED PREMISES: Any room, building, structure or place, whether permanent or temporary, occupied by any person licensed to conduct business within the town
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