What is required for a Michigan contractor to form a Professional Limited Liability Company (PLLC)?
Correct Answer
D) Professional license and state registration
A PLLC in Michigan requires both a professional license (contractor license) and proper state registration with the Department of Licensing and Regulatory Affairs.
Why This Is the Correct Answer
A PLLC in Michigan requires both a professional license (contractor license) and proper state registration with the Department of Licensing and Regulatory Affairs.
More mi-business 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:
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A contractor forms an LLC in Michigan for construction work. What additional business requirement must be met for licensing?
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A Michigan contractor operates as a sole proprietorship and wants to convert to an LLC. The business has $150,000 in assets and $75,000 in liabilities. What is the owner's equity that will transfer to the new LLC?