Introduction
Limited Liability Companies (LLCs) are a popular business structure for small business owners in Michigan. They offer several advantages over other business forms, including limited liability protection, pass-through taxation, and flexibility in management.
If you’re considering forming an LLC in Michigan, you must file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). As part of this process, you will need to take a business entity test. This test ensures that you understand the basic requirements of forming and operating an LLC in Michigan.
Which Test Should I Take?
There are two different business entity tests that you can take in Michigan:
- The Basic Business Entity Test is a general test that covers the basics of forming and operating a business in Michigan. This test is required for all business entities, including LLCs, corporations, and partnerships.
- The LLC-Specific Business Entity Test is a specialized test that covers the specific requirements of forming and operating an LLC in Michigan. This test is only required for LLCs.
How to Take the Test
You can take either test online or in person at a LARA office. The online test is available 24/7, and you can take it at your own pace. The in-person test is available during regular business hours, and you must schedule an appointment in advance.
Cost of the Test
The cost of the Basic Business Entity Test is $10. The cost of the LLC-Specific Business Entity Test is $20.
Passing the Test
To pass either test, you must answer at least 70% of the questions correctly. If you fail the test, you can retake it as many times as necessary.
What Happens After I Pass the Test?
Once you pass the test, you will receive a certificate of completion. You must include this certificate with your Articles of Organization when you file them with LARA.
Additional Resources
In addition to the information provided in this article, you can also find helpful resources on the LARA website, including:
FAQs
1. Which test should I take?
If you’re forming an LLC in Michigan, you must take the LLC-Specific Business Entity Test.
2. How much does the test cost?
The cost of the LLC-Specific Business Entity Test is $20.
3. How do I take the test?
You can take the test online or in person at a LARA office.
4. What happens if I fail the test?
If you fail the test, you can retake it as many times as necessary.
5. What should I do after I pass the test?
Once you pass the test, you will receive a certificate of completion. You must include this certificate with your Articles of Organization when you file them with LARA.
