Appendices

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Appendices

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Appendix O2
Contributions by a Partnership, Limited Liability Company (LLC) or Professional Limited Liability Company (PLLC)

A contribution to a Candidate Committee or other registered committee that is made on a partnership, LLC or PLLC check is viewed as a contribution from the partnership, LLC or PLLC unless the amount contributed is attributed to individual members of the partnership, LLC or PLLC. This means that a partnership, LLC or PLLC has the option of disclosing its activity in one of two ways.

  • If a partnership contributes $500.00 or more in a calendar year and the amount contributed has not been attributed to members of the partnership, LLC or PLLC, the partnership, LLC or PLLC is required to register as an Independent or Political Committee (PAC) under the Michigan Campaign Finance Act (MCFA). In this option, the PAC discloses the activity of the partnership, LLC or PLLC by filing campaign statements. A separate account for receiving contributions must be established as required by section 21(6) of the MCFA. Contributions given to the committee by the partnership, LLC or PLLC are reported as having been received from the partnership, LLC or PLLC. Contributions received by members or other persons are also reported as required by section 26 of the MCFA. Since section 54 of the MCFA prohibits corporate contributions, no funds from incorporated members may be received by the committee to make expenditures.
    • The recipient committee then reports the amount contributed based on the information provided on the check as the contribution has not been attributed to individuals or members of the partnership, LLC or PLLC. If the contribution is given to a Candidate Committee or Caucus Committee, the amount applies to the contribution limit.
  • If the amount contributed has been attributed to members of the partnership, LLC or PLLC, the amount involved does not count toward the $500.00 registration threshold applicable to the partnership under the MCFA. In this option, the members of a partnership, LLC or PLLC use a business check to make a contribution to a Candidate Committee or other registered committee as though the member were using their own personal checks. The partnership, LLC or PLLC check is accompanied by a written statement containing the name, address, date and amount being contributed by each partner or member. Those individuals whose contributions total more than $100.00 must also provide their occupation, employer business address. Since section 54 of the MCFA prohibits corporate contributions, no funds from incorporated members may be attributed or included in the funds that make up the check.
    • The recipient committee then reports the amount contributed by each partner or member as a separate contribution; the name of the partnership, LLC or PLLC is not listed as a contributor. If the contribution is given to a Candidate Committee or Caucus Committee, the amount attributed to an individual partner or member counts toward that individual’s contribution limit.

In both options, care must be taken to avoid violating section 41(3) of the MCFA which states: “A contribution shall not be made, directly or indirectly, by any person in a name other than the name by which that person is identified for legal purposes”.

Further, Section 44(1) of the MCFA states: “A contribution shall not be made by a person to another person with the agreement or arrangement that the person receiving the contribution will then transfer that contribution to a particular candidate committee”.

FAQs

Are partnerships, LLCs or PLLCs incorporated?
No.

I received a contribution on a partnership, LLC or PLLC check. Is it acceptable or prohibited?
Yes.

I received a contribution on a partnership, LLC or PLLC check. How do I report the contribution?
There are 3 ways in which you may be required to report the contribution.

  1. If the check is accompanied by a list of contributors, report only those contributors on the list provided. Do not report the name on the check itself.
  2. If the check is not accompanied by a list of contributors and is not a PAC check, contact the contributor and confirm that the contribution is from the partnership, LLC or PLLC. Then report as indicated.
  3. If the check is a PAC check, report the contribution based on the information on the check.

I received a contribution on a partnership, LLC or PLLC PAC check. How do I report the contribution?
Since the contribution is on a PAC check, simply report the contribution based on the information on the check. It is important to make sure that the contribution limits for Candidate Committees and Caucus Committees have not been exceeded.

Can partnerships, LLCs and PLLCs make indpendent expenditures to support a candidate or ballot question?
Yes. If a partnership or LLC makes independent expenditures for or against a ballot question or a candidate of $500.00 or more in a calendar year, the partnership, LLC or PLLC is required to register as a committee under the MCFA.

Can partnerships, LLCs and PLLCs contribute to a Political Party Committee or its administrative account?
Yes.

RULINGS ON SECTION 4 OF THE MCFA – CONTRIBUTION - PARTNERSHIP, LLC OR PLLC

6/23/1994N/AAG #68073, 4, 54, R35aThe prohibition on corporations making contributions or expenditures in elections for state office in section 54(1) of the Michigan Campaign Finance Act does not apply to limited liability companies formed under the Michigan Limited Liability Company Act. Contributions or expenditures to a candidate from a limited liability company may be attributed to individual A limited liability company that has a corporation as a member may not make contributions or expenditures in elections for state office with funds derived from the corporation member. A limited liability company that has a corporation as a member may make contributions or expenditures in elections for state office with segregated funds derived from the non-corporate members of the limited liability company….Complete text
11/10/1981ISPIRICH41, 54If a contribution is made from a partnership account, and if some of the partners are incorporated, then the contribution is permissible provided that it is attributed solely to unincorporated partners….Complete text
04/29/1981ISGALASSO3, 6, 11, 24, 41,A partnership will not be a “committee” if a contribution of $200.00 or more received from the partnership is accompanied by a written statement attributing the contribution to the individual partners [Amount changed to $500.00, P.A. 95, effective June 21, 1989]…..Complete text

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