LIMITED LIABILITY COMPANIES
While corporations have existed under Michigan Law for well over a hundred years, limited liability companies (LLC’s) have only existed here for roughly the last ten years. However, despite their relatively short life, LLC’s have managed to find particular favor within the business and legal community. In a broad sense, they combine features of a corporation with those of a partnership. They are particularly convenient for the individual entrepreneur who seeks to set up a business entity that limits his or her personal liability, while simultaneously keeping the business’ structure simple. In fact, a single member LLC does not even require its own tax return. It can simply report to the Internal Revenue Service, via Schedule C on its owner’s 1040!
However, an increasing number of large businesses are also operating as LLC’s, rather than as corporations or partnerships. One reason may be that LLC’s are inherently flexible; a LLC can have more than one class of owner, as compared to the “S” corporation, which can only have a single class of shareholder. Furthermore, a LLC avoids the trap of double taxation -- the infamous tax feature of a “C” corporation. Like the “S” corporation, the LLC is a pass-through business entity; its own tax return is merely informational. Its gains, losses, etc., are passed on through its owners such that these items appear on each individual owner’s tax return. The result is an opportunity for effective tax planning for the individual business owner.
Our office is experienced in various matters regarding LLC’s, both those that occur in and out of the courtroom. We provide extensive services relating to LLC’s, including (but not limited to the following):
• Shareholder Agreements
• Business Review, Reorganization & Analysis
• Stock Buyouts
• Asset Purchases
• Employment Agreements & Employment Related Issues
• Consulting Agreements
• Mergers & Acquisitions
• General & Specific Business Consultations
• Insurance Related Issues
• Entity Formation & Organization
• Shareholder Disputes
• Partnership Disputes
• Operating Agreements
In addition, we also provide services regarding partnerships, including their formation and litigation regarding disputes that may arise between partners.
