Michigan Laws 450.4808 – Winding up; distribution of assets; order; filing tax returns and paying tax obligations
Current as of: 2024 | Check for updates
|
Other versions
(1) Upon the winding up of a limited liability company, the assets shall be distributed in the following order:
(a) To creditors, including members who are creditors, to the extent permitted by law, in satisfaction of liabilities of the limited liability company other than liabilities for distributions to members under section 304 or 305. Reasonable provision shall be made for debts, liabilities, and obligations that are not liquidated but will not be barred under section 806 or 807.
Terms Used In Michigan Laws 450.4808
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Operating agreement: means a written agreement by the member of a limited liability company that has 1 member, or between all of the members of a limited liability company that has more than 1 member, pertaining to the affairs of the limited liability company and the conduct of its business. See Michigan Laws 450.4102
(b) Except as provided in an operating agreement, to members and former members in satisfaction of liabilities for distributions under section 304 and 305.
(c) Except as provided in an operating agreement, all remaining assets to members and former members in accordance with their shares of distributions as determined under section 303.
(2) Before the assets of a limited liability company are distributed pursuant to subsection (1), the limited liability company shall file tax returns and pay tax obligations as required by Act No. 122 of the Public Acts of 1941, being section 205.1 to 205.31 of the Michigan Compiled Laws.