The Importance of Conducting a Business Entity Search in Michigan
If you’re planning on starting a business in Michigan or expanding to the state, it’s essential to conduct a business entity search. This search will help you determine whether your desired business name is available and also check if the entity you want to form exists already. Conducting a business entity search is vital, and this article highlights why.
What is a Business Entity Search?
As the name suggests, a business entity search is a process of investigating a business entity’s status to ensure it complies with some legal requirements. This search determines whether the desired business name is available or already in use. The purpose of a business entity search is to ensure your desired business name is not identical or too similar to someone already using it to avoid legal disputes.
In Michigan, a business entity search should be conducted through the Michigan Department of Licensing and Regulatory Affairs (LARA). This search should be done before you register or form a corporation, limited partnership, or limited liability company (LLC). Conducting a business entity search in Michigan can save you from future legal complications and help you obtain necessary permits and licenses required to operate your business.
Why is a Business Entity Search Important?
A business entity search is essential for various reasons. First, it helps you to avoid legal complications. Failing to conduct a business entity search may lead to trademark infringement lawsuits, wasted money on branding, and a lack of differentiation in the market. A business entity search allows you to check if the business name you desire is identical or too similar to someone else’s; if so, they may have an infringement lawsuit against you.
Second, a business entity search enables you to check the availability of your preferred business name. Suppose someone else is using a similar business name, your choice of name will be declined. This wasted time and money are why it’s imperative to check the availability of your business name before registering. Without this search, you may be forced to change your name in the future, leading to financial loss and confusion.
Third, a business entity search allows you to obtain necessary permits and licenses required to operate your business. It helps you understand whether a corporation, LLC, or limited partnership is the best choice for your business. A business entity search confirms whether the entity exists, is in good standing or dissolved, and whether it’s registered with the state.
How do you Conduct a Business Entity Search in Michigan?
In Michigan, conducting a business entity state requires visiting the Michigan Department of Licensing and Regulatory Affairs’ (LARA) webpage and following some straightforward steps:
1. Open LARA’s website.
2. Select ‘Business Entity Search’ under Quick Links.
3. Enter the desired business name.
4. Select the entity type: corporation, LLC, or limited partnership.
5. Click on ‘Search.’
If the search results show that your name is not available, you will need to come up with another business name. However, suppose the name is available, you can proceed with registering your business with the state of Michigan.
Conclusion
Conducting a business entity search in Michigan is critical when starting a business or expanding an existing one. From checking your desired name’s availability to ensuring compliance with legal requirements, conducting a search can save you from future legal and financial complications. Therefore, it’s imperative always to conduct a business entity search before registration.
