Under Michigan law, which document must be filed with the state to form a Limited Liability Company (LLC)?
Correct Answer
B) Articles of Organization
In Michigan, an LLC is formed by filing Articles of Organization with the Department of Licensing and Regulatory Affairs.
Why This Is the Correct Answer
In Michigan, forming an LLC requires filing Articles of Organization with the Department of Licensing and Regulatory Affairs (LARA). This is the statutory document that legally creates the LLC entity.
Why the Other Options Are Wrong
Option A: Operating Agreement
An Operating Agreement governs internal LLC management and member relationships. It is not filed with the state and is not required to form the LLC — it is an internal document, often optional.
Option C: Certificate of Formation
Certificate of Formation is the LLC formation document used in Delaware and some other states, not Michigan. Michigan uses the term 'Articles of Organization.'
Option D: Articles of Incorporation
Articles of Incorporation are used to form a corporation, not an LLC. This is one of the most common confusion points between entity types.
Memory Technique
LLC = Articles of Organization. Corporation = Articles of Incorporation. Remember: 'LLC Organizes; Corps Incorporate.' The word 'organization' fits an LLC's more flexible, less formal structure.
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A contractor has 12 employees with an annual payroll of $480,000. If the workers' compensation rate is 8.5% of payroll, what is the annual premium?
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A Michigan contractor completes $180,000 worth of work in a calendar year. What is the required workers' compensation insurance premium if the rate is 8.5% of payroll and payroll represents 35% of the contract value?