Michigan a Corporation Form

What is the Michigan A Corporation

The Michigan A Corporation, often referred to as a professional corporation, is a specific type of business entity recognized under Michigan law. This structure is designed primarily for professionals such as doctors, lawyers, and accountants who wish to limit their personal liability while enjoying the benefits of corporate status. Unlike other business entities, this type of corporation allows for the unique needs of licensed professionals to be addressed, ensuring compliance with state regulations governing professional practices.

Key elements of the Michigan A Corporation

Several key elements define the Michigan A Corporation, including:

• Limited Liability: Shareholders are typically not personally liable for the debts and obligations of the corporation.
• Professional Licensing: All shareholders must hold the necessary licenses to practice their profession in Michigan.
• Bylaws: The corporation must adopt bylaws that govern its operations and outline the rights and responsibilities of its members.
• Articles of Incorporation: This document must be filed with the Michigan Department of Licensing and Regulatory Affairs (LARA) to establish the corporation legally.

Steps to complete the Michigan A Corporation

Establishing a Michigan A Corporation involves several steps:

1. Choose a Name: The name must be unique and comply with Michigan naming requirements.
2. Prepare Articles of Incorporation: This document should include the corporation's name, purpose, and details about the shares.
3. File with LARA: Submit the Articles of Incorporation to the Michigan Department of Licensing and Regulatory Affairs.
4. Create Bylaws: Develop bylaws that define the governance of the corporation.
5. Obtain Necessary Licenses: Ensure all shareholders have the required professional licenses.
6. Hold Initial Meeting: Conduct the first meeting of the board of directors to adopt bylaws and address other initial business.

Legal use of the Michigan A Corporation

The legal use of a Michigan A Corporation is primarily for professionals who need to operate within a corporate structure while adhering to state regulations. This includes maintaining compliance with licensing requirements, following corporate formalities, and ensuring that the corporation operates in a manner that protects the interests of its shareholders. Additionally, the corporation must keep accurate records and file annual reports as required by Michigan law.

Required Documents

To successfully establish a Michigan A Corporation, several documents are required:

• Articles of Incorporation: This foundational document must be filed with the state.
• Bylaws: Internal rules governing the operation of the corporation.
• Professional Licenses: Proof that all shareholders are licensed to practice their profession.
• Meeting Minutes: Documentation of decisions made during board meetings.

Eligibility Criteria

To qualify as a Michigan A Corporation, the following criteria must be met:

• All shareholders must be licensed professionals in their respective fields.
• The corporation must operate within the scope of the professional services provided by its members.
• The corporation must comply with all applicable state laws and regulations governing professional corporations.