206.845 Classification as disregarded entity for federal income tax purposes; treatment of certain conversions into a limited liability company.
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206.845 Classification as disregarded entity for federal income tax purposes; treatment of certain conversions into a limited liability company.
Sec. 845.
Notwithstanding any other provision of this act, both of the following apply:
(a)A person that is a disregarded entity for federal income tax purposes under the internal revenue code is classified as a disregarded entity for purposes of this part.
(b)A person that converts into a limited liability company under section 7 of 1883 PA 129, MCL 484.7, is treated as a corporation for purposes of this part unless that converted entity is a disregarded entity for federal income tax filing purposes under the internal revenue code and its regarded owner is treated as a corporation for state and federal income tax purposes.
History: Add. 2021, Act 135 , Imd. Eff. Dec. 21, 2021 ;-- Am. 2024, Act 177 , Imd. Eff. Dec. 23, 2024
Compiler's Notes: Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."