How to Build a Company in Michigan
- 1). Decide on a corporate structure. There are four basic business structures available in Michigan. These structures are: corporation -- stock is held by shareholders and directors; partnership -- two or more entities under partnership agreement; limited liability company -- members liability is limited to the particular share they hold in the company; sole proprietorship -- one individual responsible for all company functions. The deeper legal and tax implications behind each structure should be evaluated before deciding on the corporate structure type.
- 2). Incorporate your business. In the state of Michigan entrepreneurs must register the company articles of incorporation with the Department of Energy, Labor and Economic Growth (DELEG), rather than the secretary of state as in most states. The articles of incorporation give specifics regarding the companies location, mission, shareholders, directors, and structure. The proper forms and fees for filing the articles of incorporation are on the DELEG website.
- 3). Register for an employer identification number (EIN). The Internal Revenue Service (IRS) requires all new businesses in Michigan obtain an EIN, by filing form SS-4. The EIN will also be used to open a bank account for the business, which should also be done at this time. The IRS website currently has an online EIN assistant feature that allows entrepreneurs to register for, and receive the EIN online immediately upon online form completion.
- 4). Fulfill additional local and state licensing and registration requirements. There may be licensing or registration requirements specific to your business type---such as sellers permits and business licenses. Contact the local government and the Michigan state government for details about licensing and industry-specific registration requirements.
- 5). Secure a place of business. If your business will offer tangible goods or services to the general public, be sure to secure a location that is in a high-traffic and high-visibility area.
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