Forming a Limited Liability Company (LLC) in Michigan is an easy process, but it involves a few steps.
Start a Michigan LLC for $0 + state fee
To form an LLC in Michigan for free + state fee, we have listed 3 options to consider:
You can go online and visit the Michigan Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
Want to Keep Things More Private?
- Northwest $39 + state fee ‘Privacy by Default’
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Michigan Business Tips
A good LLC service may prevent delays and effect the length of time to form your Michigan LLC due to filing errors from diy entreprenuers. Choosing a Michigan LLC vs S Corp is another issue to consider.
To begin, conduct a Michigan LLC name search to ensure the availability of your desired business name.
Once you’ve confirmed its availability, you can proceed with preparing the essential formation documents, including registering your Michigan business name and drafting a Michigan LLC operating agreement, which outlines the internal structure and management of your LLC.
Furthermore, applying for a business licenses in Michigan if you are required is something to consider and obtaining a Michigan Employer Identification Number (EIN) from the IRS is essential for tax purposes if you plan to have employees.
In the event that you decide to dissolve an LLC in Michigan, ensure compliance with the state’s dissolution procedures to avoid any potential legal or financial complications.
Consulting with professional dissolution services like Incfile can provide valuable guidance and assistance throughout the dissolution process, ensuring a smooth conclusion to your LLC’s operations in Michigan.
Forming an LLC in Michigan for $0 (DIY Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
Forming a Limited Liability Company (LLC) in Michigan can be a straightforward process if you follow the necessary steps and meet the legal requirements. This article will guide you through the steps to establish your own LLC in Michigan.
Step 1: Choose a Name for Your LLC
The first step in forming an LLC in Michigan is to choose a unique name for your business. Make sure the name you select complies with the state’s naming requirements.
It should include the words “Limited Liability Company” or the abbreviation “LLC”. You can check the availability of your chosen name on the Michigan Department of Licensing and Regulatory Affairs (LARA) website.
Step 2: Appoint a Registered Agent
Michigan requires LLCs to have a registered agent. A registered agent is a person or entity that accepts legal documents on behalf of your LLC. They must have a physical address in Michigan.
You can choose to be your own registered agent or hire a professional registered agent service.
Step 3: File Articles of Organization
Next, you need to file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). This document officially establishes your LLC.
You can file the articles online through the LARA Corporations Online Filing System. The articles should include information such as the LLC’s name, the registered agent’s name and address, and the purpose of the LLC.
Step 4: Create an LLC Operating Agreement
While not required by Michigan law, it’s highly recommended to create an operating agreement for your LLC.
This agreement outlines the ownership and management structure of your company, as well as the rights and responsibilities of the members.
It’s a crucial document that helps prevent misunderstandings and disputes in the future.
Step 5: Obtain an EIN from the IRS
An Employer Identification Number (EIN) is a unique identifier issued by the Internal Revenue Service (IRS).
You’ll need an EIN if your LLC has multiple members, or if you plan to hire employees. You can obtain an EIN by filling out the online application on the IRS website.
Step 6: Comply with Michigan Tax and Regulatory Requirements
Michigan LLCs are subject to various tax and regulatory obligations. You may need to register for state taxes, such as the Michigan Business Tax (MBT) or the Corporate Income Tax (CIT).
Additionally, certain businesses require specific licenses or permits to operate legally. Check the LARA website for information on taxes and permits related to your industry.
Step 7: Maintain Ongoing Compliance
Once your LLC is established, you must fulfill ongoing compliance requirements. This includes filing an annual report with LARA and paying the required fee.
It’s important to stay updated with any changes in regulations that may affect your LLC.
Forming an LLC in Michigan involves several important steps, from choosing a name and filing the necessary documents to complying with tax and regulatory obligations.
By following the steps outlined in this guide, you can successfully establish your LLC and start your business journey in Michigan.
Michigan LLC: Definitions
1. Limited Liability Company (LLC): A business structure that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership.
2. Michigan Department of Licensing and Regulatory Affairs (LARA): The government agency in Michigan responsible for overseeing and regulating various industries, including business formations and licensing.
3. Registered agent: A person or entity designated to receive legal documents and official correspondence on behalf of an LLC, ensuring that important information is properly delivered.
4. Articles of Organization: The legal document filed with the state to officially form an LLC. It includes essential information about the business, such as its name, registered agent, and purpose.
5. Operating agreement: A document that outlines the internal workings of an LLC, including the rights and responsibilities of its members, management structure, profit distribution, and decision-making processes.
6. Employer Identification Number (EIN): A unique identification number issued by the IRS to identify businesses for tax purposes. An EIN is required for LLCs with employees or multiple members.
7. Internal Revenue Service (IRS): The federal agency responsible for administering and enforcing tax laws in the United States.
8. Michigan Business Tax (MBT): A state tax imposed on businesses operating in Michigan, based on their net income and gross receipts.
9. Corporate Income Tax (CIT): A tax levied on the income of corporations operating in Michigan.
10. State taxes: Taxes imposed by the state government, including income taxes, sales taxes, and business-related taxes.
11. Licenses and permits: Legal authorizations are required for certain types of businesses or professions to operate in compliance with regulations and ensure public safety.
12. Annual report: A yearly filing required by the state to provide updated information about an LLC, such as its address, members, and business activities.
13. Ongoing compliance: The process of meeting legal and regulatory requirements to maintain the good standing of an LLC, including filing reports, paying taxes, and renewing licenses.
14. Business formation: The process of legally establishing a new business entity, such as an LLC, including filing necessary documents and fulfilling legal obligations.
15. Legal requirements: The laws, regulations, and procedures that must be followed when forming and operating an LLC, ensuring compliance with the state and federal laws.
16. Business name availability: Checking if a chosen business name is unique and available for use, according to the rules and guidelines set by the state.
17. Business structure: The legal framework and organizational setup of a business, determining factors such as liability protection, taxation, and management structure.
18. Ownership and management: The individuals or entities who have ownership interests in an LLC and the individuals responsible for managing its day-to-day operations.
19. Members: The individuals or entities who have ownership interests in an LLC and are typically involved in the management and decision-making processes.
20. Dispute resolution: The process of resolving conflicts or disagreements that may arise among members or stakeholders of an LLC, often through negotiation, mediation, or legal means.
Although the process of forming an LLC is identical across the United States, there are some key differences between states.
This guide will show you how to create an LLC in Michigan. We will guide you step-by-step through the process including an LLC operating agreement and highlight other important considerations.
If you want to use an LLC formation service, visit our list of the best LLC services in Michigan.
This page will provide you with all the necessary steps to look up an LLC in Michigan, draft a Michigan LLC operating agreement, and answer questions like, and how long does it take to get a Michigan LLC?.
Before you create an LLC in Michigan
There are some important details you need to know before you file an LLC. You will need to ensure that the name you choose for your business entity can be registered.
These sections detail the steps you need to follow before filing your LLC.
Michigan Limited Liability Company Act
The Michigan Limited Liability Company Act 1993, which was amended in 2002, outlines the process of forming and operating LLCs. This law provides details on how LLCs should operate in Michigan.
Michigan LLC Setup Costs
In Michigan, the filing fee for creating an LLC is $50. Additional fees can be added to speed up the process.
These fees range from $50 to $1,000, depending on how fast you need your LLC to be formed. Annual reports will cost $25 for a standard LLC and $75 for a professional LLC.
Michigan Business Resources
Setting Up Your LLC in Michigan
Register Your Business Name
Your LLC name must be distinguished from any corporations, LLCs, or limited partnerships that have been established in Michigan.
The search engine of the Department of Licensing and Regulatory Affairs can help you determine whether there is availability.
After you have confirmed the availability of your name, you can submit an Application to Reservation Name to reserve it for six months. The documents can be submitted:
- Post to P.O. Mail to P.O.
- Visit us in person at 2407 N. Grand River Ave. Lansing, MI 48906
A $25 fee is required to submit the form. This can be paid by check or money order payable to State of Michigan. You can pay online or in person by using your credit card. For more information, call (517) 261 6470.
Guidelines for Naming Your LLC
Name your Michigan business with a “limited liability company,” or any of the abbreviations LLC, L.L.C., LC, or LC. For a professional limited liability, include the exact term or one the appropriate abbreviations, “PLLC,” or “PLC.”
Certificate of Assumed Title
Do you have a nickname for your company or an alternate name that you would like to associate with your LLC. You can request a Certificate Of Assumed Name if the name or names are in Michigan.
Appoint a Resident Agent
Michigan law requires LLCs to include a resident agent as well as a registered office in the articles of organization. To accept legal documents, demands, or notices on behalf the LLC, the agent must have a Michigan physical address.
If you are at least 18 years old and have a physical address in Michigan, it is possible to be your own resident agent.
A resident agent can be hired if you don’t live in Michigan or want to delegate your services to someone outside of the company.
While the cost can be as low as $50 per annum, it is usually between $100 and $150. It is important to carefully review the services available and determine if they are within your budget.
File the Articles of Organization/Certificate of Authority
After you have hired a resident agent, and established your registered office, it’s time to submit your LLC registration documents. Articles for Organization are filed by domestic and local businesses.
You must fill out a Certificate of Authority form if your company was established outside of Michigan and you wish to do business in Michigan.
Michigan encourages you fill out and submit your document online. However, you can also print it and mail it. The filing fee is $50. You can pay the filing fee in $50 by mail.
Editing the Process
You can speed up the filing process if you’re willing to pay more.
- For $50, you can get 24-hour assistance with your formation documents (or a Certificate of Authority).
- $100 Same-day service for documents of formation (or Certificate of Authority)
- If documents are received before 3 p.m., they will be reviewed in two hours. ET: $500
- If documents are received before 4 p.m., they will be reviewed in one hour. ET: $1,000
When submitting documents by mail, please note that the Corporations Division will expedite based on the date of receipt. You must file a separate CSCL/CD-272 form for expedited service for each document.
After Forming Your LLC in Michigan
After successfully establishing your Michigan LLC, you will need to follow additional steps.
Limited Liability Company Annual Report
All LLC owners are required to file a report each year under the Michigan Limited Liability Company Act. The annual report must be filed no later than February 15, but foreign LLCs and LLCs formed after September 30, are exempt from filing a report for the year.
Professional LLCs must submit annual statements that confirm each manager or member is licensed in the industry in which they provide services.
Standard LLCs have to pay a $25 annual fee. Annual statements for professional LLCs cost $75.
Certificate of good standing
Maintaining your LLC’s good standing is important once you have set it up. This includes:
- Submit your annual report with the associated fee
- Maintaining a registered Agent
A Certificate Of Good Standing is required to verify the legitimacy of your LLC. You can order the certificate online, by phone, or by mail for $10.
You can order the certificate online or by mail, but checks and money orders should be made payable the State of Michigan. Credit card payments are accepted if you order online.
Restore Your LLC’s, Good Standing
Do not worry if your LLC is in bad standing. You can easily restore its good standing by filing a Certificate of Restoration of Good Standing along with past due annual statements or fees. You will need to complete two forms: domestic or foreign LLCs. Ensure you send the appropriate documents and the $50 filing fee. To expedite the process, you can pay $100-$1,000.
Additional considerations for LLC
You will need to do more to ensure that your LLC succeeds.
- Create an operating agreement. This document is not required but it can help ensure that your LLC operates in a legally compliant manner.
- Get an Employer Identification Number or EIN. LLCs must have multiple members and those with employees. You can obtain one today through the IRS website.
- Check online for the availability of your business name. This will help you to brand.
Most Frequently Asked Questions
What is a Michigan LLC?
A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability.
This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.
Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred to as a “pass-through” tax structure.
If the LLC meets certain criteria, it can choose to be taxed either as a C corporation C corp (S-corp), or as an S corporation (Scorp). Small business owners prefer LLCs because of their simplicity and flexibility.
What is the cost of setting up an LLC in Michigan?
For domestic and foreign businesses, it costs $50 to set up an LLC in Michigan. It usually takes 10 to 15 days.
Can my Michigan LLC operate under a different business name?
Michigan allows you to operate an LLC under multiple trade names. However, you must fill out a Certificate Of Assumed Name to allow for additional pseudonyms.
Can I be my own Michigan resident agent aka registered agent?
Michigan allows you to be your LLC’s resident agent, provided you are at least 18 years old and have a physical address in Michigan.
What is the cost of registering a Michigan LLC?
Costs vary by state. The filing fee in Michigan is $50. In Massachusetts, however, it costs $500 to create an LLC. It is important to research the options and plan accordingly.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: email@example.com