Section 206.845 - Classification as disregarded entity for federal income tax purposes; treatment of certain conversions into a limited liability companyNotwithstanding 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.Amended by 2024, Act 177,s 7, eff. 12/23/2024.Added by 2021, Act 135,s 22, eff. 12/21/2021, retroactively effective for tax years beginning on and after January 1, 2021.