Anchor Law Blog

The limited liability company (LLC) is the most common and most recommended structure for Michigan’s small and midsized businesses today. An LLC offers personal liability protection like a corporation while maintaining the pass-through tax benefits of a partnership. Importantly, it avoids the double taxation and rigid formalities associated with traditional corporations and does not contain the liability exposure of traditional partnerships.

LLCs are governed by a customized operating agreement, not bylaws. That gives you great flexibility to define your ownership shares, voting rights, profit distributions, and succession planning. Whether your business is run by a single member, multiple family members, or other investors and managers, the LLC structure adapts to your needs.

LLCs are also easier to maintain and less likely to attract costly disputes over formalities. You don't need annual shareholder meetings or complex stock structures, and membership interests can be tailored to fit your business goals. Anchor Bay Law helps clients draft detailed operating agreements that protect against future litigation, tax pitfalls, and deadlocks among owners.