Tax Law Blog
You have a reason to grow your business—you’ll make more money. You also have a reason to stick around—the proverbial pot of gold at the end of the rainbow. But what about your key employees? You should consider giving them the same incentives.
On October 15, 2013, the Michigan Limited Liability Company Act (LLC Act) and the Business Corporation Act (Corporation Act) (collectively the Acts) were both amended to permit non-licensed individuals to be owners of Professional Limited Liability Companies (PLLCs) and Professional Corporations (PCs) that provide public accounting services.
The Acts generally require that owners of PLLCs and PCs be a licensed professional of the service provided by the company. The amendments create an exception and allow non-licensed individuals to be owners of public accounting PLLCs and PCs as long as at least 50% of the equity and voting rights are held directly or beneficially by individuals who are Certified Public Accountants (CPAs). Public accounting is now the only profession under each of the Acts allowed to admit non-licensed individuals as owners.
