Questions about your Michigan startup? Start here...
With so many different types of businesses, each with their own advantages and disadvantages,
how can you decide which business type is best for you and your Michigan startup?
Click and Inc has gathered together information on several different types of businesses
so that you have the information you need to make your decision. Whatever type of
business you would like to form, Click and Inc can help!
Michigan C Corporation
When you incorporate in Michigan, by default your corporation will be a C Corporation,
subject to corporate income tax. A C Corporation in Michigan is allowed to issue
multiple shares and classes of shares, and there can be any number of shareholders.
US citizens, non-citizens, and other business entities are all qualified owners
of a C Corporation.
Review further information on starting a
Michigan C Corporation.
Michigan S Corporation
A Michigan S Corporation begins in the same way as a C Corporation—incorporating
at the state level. Then, an S-Corp Election Form must be filed with the IRS to
obtain the “S” tax classification.
An S Corporation is limited to issuing one class of shares to no more than 100 shareholders.
An S corporation is a pass-through entity, meaning that gains and losses are reported
on the individual tax returns of the owners—this avoids what is known as the “double-taxation”
of a C Corporation.
Take a look at more information on forming a
Michigan S Corporation.
Michigan LLC
A Michigan LLC is a relatively new entity type that is now common in all states.
It’s treated like a partnership in some respects, and a corporation in others. It
affords limited liability to the owners.
For more information, please take a look at our section on forming a
Michigan LLC.
Foreign Corporation in Michigan
Corporations that were registered in a state other than Michigan and wish to conduct
business in Michigan will likely find that they must first register as a Foreign
Corporation in Michigan. In order to do so, they must complete and submit a Foreign
Corporation application form. This form will include information about your existing
business.
If you’re not sure whether a Foreign Corporation is right for you, take a look at
more information about a
Michigan Foreign Corporation.
Michigan Nonprofit Corporation
Most nonprofit corporations go on to apply for 501c3 status from the IRS. To become
a 501c3 nonprofit corporation, you’ll first register as a basic nonprofit corporation
at the state level. Then, you’ll apply for the 501c3 status at the federal level.
Only when the IRS approves your application will you be qualified to accept tax-deductable
donations and take advantage of the other benefits afforded to a 501c3 Nonprofit.
ClickAndInc.com can register your nonprofit corporation—we can even assist you with
your 501c3 application! Take a look at more information on forming a
Michigan 501c3 Nonprofit Corporation.
Trade Names in Michigan
A DBA—also called an Assumed Name in Michigan—is filed at the state level in the
case of incorporated entities, and at the county level in the case of an individual
(sole proprietorship) or unincorporated partnership. These Assumed Names are available
to any legal entity who wishes to conduct business under a name other than their
own legal name.
See how ClickAndInc.com can help you with your
Michigan DBA.
Michigan Startup Quicklinks
For information on other types of businesses in Michigan, please explore the links
below.