A Michigan LLC contractor wants to add a new member. What filing is required with LARA?
Correct Answer
D) No filing required for membership changes
Michigan LLCs are not required to file with LARA when adding or removing members, as membership changes are internal matters governed by the operating agreement.
Why This Is the Correct Answer
Under Michigan LLC law, adding or removing members is an internal governance matter managed through the LLC's operating agreement. Michigan does not require LLCs to file membership change documents with LARA. The LLC's registered agent and operating agreement reflect these changes internally without a public filing requirement for membership changes alone.
Why the Other Options Are Wrong
Option A: Annual Statement update
An Annual Statement update is filed once per year to keep the LLC's registered information current, but adding a member mid-year does not trigger a separate Annual Statement filing β and in any case, membership changes are not required to be reported to LARA.
Option B: Certificate of Amendment
A Certificate of Amendment is used to formally amend the Articles of Organization (e.g., changing the LLC name or registered agent), not for membership changes. Members are typically not listed in the Articles of Organization in Michigan.
Option C: Articles of Organization amendment
An Articles of Organization amendment is not required for membership changes in Michigan LLCs. The Articles of Organization establish the LLC but do not typically enumerate members; that detail is handled in the operating agreement.
Memory Technique
Think 'LLC = Internal Club Rules.' Adding a member to an LLC is like adding someone to a club β it's handled internally by the club's bylaws (operating agreement), not by filing paperwork with the government. Only structural changes (name, registered agent) require LARA filings.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
People Also Study
Business & Financial Management
120 questions Β· 70% to pass
Contract Administration
60 questions Β· 70% to pass
Project Management
60 questions Β· 70% to pass
Related Study Resources
Previous Question
Under LARA regulations, how many continuing education hours are required for license renewal?
Next Question
A Michigan contractor completes a $45,000 kitchen renovation project. The homeowner pays $35,000 but refuses to pay the remaining $10,000. Under Michigan's Construction Lien Act 497, what is the maximum lien amount the contractor can file?
