The Michigan Limited Liability Company Act has recently been amended (Public Act 290 of 2010). The changes will be discussed in a series of articles on our firm blog.
One of the most important changes to the Act is to allow a corporation to be converted into a limited liability company, or the conversion of a limited liability corporation into a corporation. Until now, it was necessary to go through a formal merger of a corporation and an LLC to accomplish this result. Now all that will need to be done to convert the form of the entity is to file a form with the State of Michigan.
Tax, corporate governance or other considerations may make it desirable to change the form of an existing entity from a corporation into an LLC, or from an LLC into a corporation. The new conversion process will make this much simpler and less expensive.
The amendments to the Limited Liability Company Act became law on December 16, 2010. The conversion forms have not yet been developed by the State’s Corporation Division.
This article was written by Mark S. Demorest, Managing Member of Demorest Law Firm.
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