In this article, we’ll help you determine if an LLC is right for you, and the basics of how to start an LLC in Michigan.
There are a number of advantages to establishing your cannabis business LLC, but four that especially stand out in the cannabis industry.
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As the name implies, the owners of an LLC have no personal liability for the LLC.
The LLC is responsible for its debts, obligations and legal liabilities.
The business owners may experience loss of their capital contribution, similar to shareholders.
However, their personal assets are usually not at risk.
An LLC is not considered separate from its owners for tax purposes; the IRS recognizes such businesses as pass-through entities.
Income received by the business passes through to the LLC’s members.
They report their share of profit or loss on their individual income tax returns.
Additionally, LLCs may be eligible for additional tax benefits available as pass-through deductions.
Easy to Establish
Creating and sustaining an LLC can be less complicated compared to other business entity structures. LLCs aren’t subject to the same required record-keeping, annual meetings and fees needed to maintain corporations.
Establishing your LLC can be a simpler process.
In most states to start your LLC, you must file the Articles of Organization with the Corporations division of your state government and make payment of your filing fee.
However, if you’re unsure about how to start an LLC in Michigan, you could get in touch with an LLC formation service provider.