Does Michigan Require an Operating Agreement for LLC? Requirements for Forming an LLC in Michigan

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An operating agreement outlines an LLC’s structure and operations. Michigan does not require one, but having one protects the business. It establishes rules, regulations, and provisions as an official contract binding members.

Necessary Documentation

You need to file paperwork and pay fees to form an LLC in Michigan. The steps are as follows:

  1. Choose a business name and check if it’s available.
  2. Reserve the name.
  3. File Articles of Organization and pay the $50 filing fee.
  4. Have an operating agreement.
  5. Obtain an Employer Identification Number (EIN).
  6. Open a business bank account.
  7. Acquire necessary licenses and permits.

Filing as an LLC in Michigan provides liability protection and tax advantages for your business. With the right preparation, starting an LLC in Michigan can set up your business for success.

Understanding Operating Agreements

A Michigan LLC Operating Agreement is a written contract between the LLC owners. It includes detailed information about LLC ownership structure and how the LLC is managed. Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement to prevent conflict among business partners.

An operating agreement helps ensure limited liability status is upheld by court officials and adds to business credibility. Financial institutions and other organizations may need to see a copy of this paperwork to do business.

Even though not legally required as per the Michigan LLC Act definition, an Operating Agreement is strongly recommended. It outlines each member’s ownership interest and how the company will function. Any changes require amendments, complying with Statute Sections 450.4104 and 450.4206, filed with the Department of Licensing and Regulatory Affairs.

Consulting an attorney experienced in Michigan LLC Law is advisable to ensure the agreement is thorough, legally binding, and correctly amended when necessary. Unlike Articles of Organization, the operating agreement is an internal document not filed with the state, but it governs your LLC and establishes how to handle various situations.

Northwest offers free, attorney-drafted templates customized for Michigan LLCs to help in creating a strong operating agreement.

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