Michigan Laws 450.1287 – Professional services; limitation
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Terms Used In Michigan Laws 450.1287
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Personal property: All property that is not real property.
- Professional service: means a type of personal service to the public that requires that the provider obtain a license or other legal authorization as a condition precedent to providing that service. See Michigan Laws 450.1282
(1) A professional corporation shall not engage in any business other than providing the professional service or services for which it was specifically incorporated.
(2) This chapter does not prohibit a professional corporation from doing any of the following:
(a) Investing its money in real estate, mortgages, stocks, bonds, or any other type of investments.
(b) Owning real or personal property necessary to provide a professional service or services.
(c) Becoming a partner in a partnership formed under the uniform partnership act, 1917 PA 72, MCL 449.1 to 449.48, if the partnership provides 1 or more of the same professional services as the professional corporation.
(d) Becoming a member or manager of a professional limited liability company organized under or subject to chapter 9 of the Michigan limited liability company act, 1993 PA 23, MCL 450.4901 to 450.4910, if the professional limited liability company provides 1 or more of the same professional services as the professional corporation.
(e) Becoming a shareholder in a professional corporation governed by this chapter, if both professional corporations provide 1 or more of the same professional services.