What is a limited liability company (LLC)?

A limited liability company (LLC) is a type of business structure recognized by the state of Michigan. It is a type of business entity that provides limited liability protection for its owners. This means that the owners of an LLC will not be held personally liable for the debts or other liabilities of the business. As a result, any personal assets of the owners (such as houses or cars) will not be at risk if the business fails. An LLC is an independent legal entity, which means that it has separate powers and rights from its members. This means that, unlike a partnership or sole proprietorship, the members of the LLC cannot be held personally liable for the debts or other liabilities of the business. In Michigan, forming an LLC is a relatively simple process. You must file a document (known as the Articles of Organization) with the Michigan Department of Licensing and Regulatory Affairs. Once the document is filed, the LLC will be formed. After the LLC is formed, you must complete other legal requirements such as appointing a registered agent, filing annual reports, and holding regular meetings of the members. An LLC can be a great way to protect your personal assets, as there is limited liability protection for the members. However, it’s important to remember that an LLC is not a “get out of jail free” card, and business owners should still use sound business practices to protect their assets. Additionally, it’s important to remember that certain activities (such as professional services) may require additional licensing or other forms of protection.

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What is a limited liability company (LLC)?

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