We partnered with a business lawyer to develop free business agreement templates and a customizable business agreement tool. Simply log in to a free business center account to get started. A written company agreement helps members and officers of a Michigan LLC avoid any disputes about the operation of the business. A company agreement exists as a relevant document of the company. In the absence of a written company agreement, the company must comply with Michigan`s standard rules for LLCs. This is recommended by the state. Under Section 450.4102(r) of the Michigan Business Statutes, each Michigan LLC may enter into a written enterprise agreement to regulate the company`s operating procedures. Every Michigan LLC owner should have a business agreement to protect the operation of their business. While not imposed by the state, a company agreement establishes clear rules and expectations for your LLC, while justifying your credibility as a legal entity. The Michigan LLC Company Agreement is a legal document used by managing members, contributors to a business, or by an individual contractor who wishes to define their policies and procedures for bidding with the state. The State of Michigan does not require a company to have this document in its business to operate within the state. However, it must be clear to all companies that, without this document, the owner or members of the company could be held liable in each court for disputed activity.

By completing and submitting this document to the state, the personal and financial assets of the owner/member would not be legally accessible. This does not mean that members/owners will not be liable for damages, but they will not be required to sell or liquidate personal property to satisfy claims. As long as this document has been implemented, owners/members have access to tax benefits that are not otherwise available. For example, without a company agreement, members of a Michigan LLC must allocate business profits and losses based on the company`s ownership shares. A written company agreement also protects the status of socially limited liability. A written company agreement proves that the company is acting as an LLC, unlike a sole proprietorship or partnership. Create a free account in our business center to access enterprise agreement templates and dozens of other helpful instructions and resources for your business. No matter what type of Michigan LLC you start, you should create a company agreement…