Posts Tagged "LLC"

Buying a Business in Michigan

Posted by on Aug 5, 2011 in Business Planning | 0 comments

Buying a business in any state entails quite a bit of legal, financial and tax analysis.  Will you be buying the stock of the company (membership interest if an LLC) or the assets of the company?  Will your company be organized as a corporation, an LLC, or some other type of business entity?  What taxes and local licenses will be needed?  There are many other issues to sort through, but in Michigan, there are a few issues which are rather unique to purchasing a business within the state.  These local nuances are why an attorney with a great deal of familiarity with Michigan based...

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Corporate Buy-Sell Agreements

Posted by on Jun 28, 2011 in Business General Counsel, Business Planning | 0 comments

Michigan law requires corporations to have certain basic governance documents.  Documents such as Articles of Incorporation and Bylaws dictate the relationships, rights, duties and responsibilities of the shareholders, officers and directors of the corporation.  But these standard corporate documents do not typically contain terms for the liquidation of one or more owner’s interest when circumstances call for such a liquidation. In the context of most publicly traded companies, shareholders have a fairly simple way to divorce themselves from the corporation when they are dissatisfied with...

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Personal Liability for Certain Corporate Tax Debts

Posted by on Jun 16, 2011 in Business Planning, Federal Taxes | 0 comments

Some business owners incorporate, or form an LLC, in order to gain credibility for their business ventures.  The real reason for forming a corporation (or LLC), however, is the separation of personal assets from business debts, and business assets from personal debts.  This concept is often called the “corporate veil”.  But certain activities can pierce the corporate veil and subject the owners and managers of the business to personal liability for debts of the corporation/LLC. An unfortunate fact of life for many business owners and managers is the occasional cash-flow crunch.  Prioritizing...

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