Wednesday, August 19, 2020

Everything You Need to Know About Limited Liability Company and Subchapter S Corporation

business law Ann Arbor

Both entities are created under the laws of the State of Michigan. Articles of Organization are filed to create an LLC; the end of its name must use “LLC.” Articles of Incorporation are filed to create a Corporation; the end of its name must use “Inc.” or “Corp.” Please note that a Michigan Corporation becomes an S Corp when it files an election for tax status with the IRS.

Owners of an LLC are called “members” whereas owners of S Corp are called “shareholders.” Members can choose to manage the LLC themselves. On the other hand, shareholders must elect a board of directors, who then choose the officers to manage the S Corp. The shareholders can elect themselves to the board and then choose to become the officers of the S Corp.

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If you’re interested in learning more about business law or whether LLC or S Corp is best for your new business, please call Marty Bodnar at 734-665-4441 or email him at

Wednesday, August 5, 2020

Starting a Business? How to Choose Between Limited Liability Company and Subchapter S Corporation

People often contact PSED to start a business after a career in corporate America. Usually, these people just want to keep it simple and want an entity that will have limited liability, meaning that creditors can’t go after their personal assets but can only go after the assets of the new entity.

The two types of legal entity that offer simplicity along with limited liability are Limited Liability Companies (“LLC”) and Subchapter S Corporations (“S Corp”). 

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For more information or to speak with us about your legal issue or business law questions, please contact us in Ann Arbor at 734-665-4441. To learn more about Pear Sperling Eggan & Daniels, P.C., or any of our attorneys, please visit us at