L.L.C. is an acronym for limited liability companies, and we’ve seen a lot of those spring up here in Michigan in the last 15 years. L.L.C.’s, after they’re filed properly and they’re issued a separate Employer Identification Number (EIN), every year they have to file with the state of Michigan, something called a MAR. A Michigan Annual Report. That name changes sometimes.
It’s a simple document that simply indicates where they’re located, what their name is, and who the resident agent of the company is. That is to say, who do we get a hold of if the State of Michigan or somebody else needs to get a hold of them. Who do we get a hold of and where are they?
That needs to be filed with the state of Michigan every year. It’s only $25 to file it. You can do it online.
However, if you fail to do that, for two consecutive years, the state of Michigan does something called dissolves the company. Once you’re dissolved, now you may lose your limited liability status, and the whole reason why you went into being in the business and you formed the limited liability company is you don’t want your personal assets to be at risk for business undertakings, business dealings. If you don’t do that for two consecutive years and the state dissolves you, now you’ve lost that potential liability coverage.
I absolutely encourage folks, not just LLCs, but corporations as well, and there are S corporations, there are C corporations, and then of course there are profit and non-profit corporations, but all must file annually with the state of Michigan to protect and keep their limited liability status intact. It’s a simple thing to do, costs you $25 bucks. File your MAR with the state of Michigan every year.