How to Start an LLC in Michigan

Step 1: Name Your Michigan LLC

The first step in starting an LLC in Michigan is picking a name.

Think of a name that will be memorable and easily searchable by your potential clients, while also following the Michigan naming requirements.

1. Important Naming Guidelines for Michigan LLCs:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.) and cannot include “corporation,” “incorporated,” or one of their abbreviations (“corp,” “inc,” etc.).
• Your name cannot include restricted words (e.g., adjuster, bank, academy, etc.) according to Michigan law unless certain regulatory criteria have been met.
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Your name cannot include words that imply that it conducts business other than that listed in its Articles of Organization.

Keep in mind that if you want to operate under a name other than your registered name, a Certificate of Assumed Name (Form SCL/CD 541) must be filed with the Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau.

For a complete list of naming rules in Michigan, we recommend checking out the Michigan Department of Licensing and Regulatory Affairs website.

2. Conduct a Business Name Search in Michigan

To check whether your desired name is available in Michigan, do a business entity search on the Michigan Department of Licensing and Regulatory Affairs (LARA) website. Simply type the name you are considering and if nothing pops up that means it’s available.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name. You can do this for up to six months, following the month of filing, with a $25 processing fee.

For more information, see our Michigan LLC Name Search guide

3. Conduct a Domain Name Search

We recommend that you check to see if your business name is available as a web domain. Even if you don’t plan to create a business website right away, this is an extremely important step as it will prevent others from acquiring it.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

FAQ: Naming a Michigan LLC

Step 2: Choose a Resident Agent in Michigan for Your LLC

After you find the right name for your LLC, you will need to nominate a Michigan resident agent. This is commonly known as a registered agent in states other than Michigan.

What is a resident agent? A resident agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business’s primary point of contact with the state

Who can be a resident agent? A resident agent must be a resident of Michigan or a foreign corporation authorized to conduct business in the state of Michigan, such as a registered agent service. You can also choose to elect an individual within the company (e.g., yourself, etc.) or use a business attorney instead.

Annual Compliance. Under Section 450.4207 of the Michigan Limited Liability Company Act, your LLC will need to file an annual statement with the state that contains your resident agent’s name and the address of their registered office in Michigan. The deadline for this statement is February 15 every year, except for LLCs that were formed after September 30 the year before.

FAQ: Nominating a Registered Agent

Step 3: File Your Michigan LLC Articles of Organization

– OR –

OPTION 2: File by Mail or in Person

Download Form

State Filing Cost: $50, payable to the Michigan Department of Licensing and Regulatory Affairs (nonrefundable).

Mailing Address:
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau — Corporations Division
P.O. Box 30054
Lansing, MI 48909

Office Address:
Michigan Department of Licensing and Regulatory Affairs
2407 N Grand River Ave
Lansing, MI 48906

For help with completing the form, visit our Michigan Articles of Organization guide.

If you’re expanding your existing LLC to the state of Michigan, you will need to form a foreign limited liability company.

FAQ: Filing Michigan LLC Documents

Step 4: Create a Michigan LLC Operating Agreement

An operating agreement is not required for an LLC in Michigan, but it’s a good practice to have one.

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

A comprehensive operating agreement ensures that all LLC owners are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Michigan Multi-Member LLC Operating Agreement
• Michigan Single-Member LLC Operating Agreement

FAQ: Creating a Michigan LLC Operating Agreement

Step 5: Get an EIN for Your Michigan LLC

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN number is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Michigan Compared

For a comprehensive comparison, read our Best LLC Service review. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Michigan LLC

After you’ve formed your LLC, you’ll need to complete key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

Get a Business Bank Account & Credit Card

Using a dedicated business banking account and business credit card is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company’s credit history, which can be useful to raise capital later on.

Get Insurance

Business insurance helps you manage risks and focus on growing your business. The most common types are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Michigan, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers compensation insurance.

Want to learn exactly what coverage your Michigan business may need? Read our full Michigan Business Insurance Guide.

Obtain Business Licenses If Needed

While Michigan doesn’t require a general state business license, your LLC may need specific licenses or permits based on its industry, location, and activities.

• State-Level Licenses: Use the Michigan State License Search to determine if your business requires any state-issued licenses or permits.
• Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals.
• Federal Licenses: If your business activities are regulated by a federal agency (e.g., selling alcohol, firearms, or operating in transportation), consult the U.S. Small Business Administration’s guide to determine necessary federal licenses or permits.

For a comprehensive overview and step-by-step instructions, refer to our Michigan Business License Guide.

Pay Michigan LLC Taxes

Your Michigan LLC will have several key tax obligations:

Federal LLC Tax Requirements

As a pass-through entity, profits typically flow to your personal tax return. LLC members pay self-employment tax (15.3%) on their earnings.

Sales Tax

If you are selling a physical product, you’ll typically need to register for a seller’s permit through the Michigan Department of Treasury website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called “Sales and Use Tax,” is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our sales tax guide to find out more.

Employer Taxes

If you have employees in Michigan, you will need to register for Unemployment Insurance Tax through the Michigan Unemployment Insurance Agency. You will also need to sign up for Employee Withholding Tax through the Michigan Department of Treasury.

Local Taxes 

Some Michigan cities have their own income tax requirements that may affect your LLC. Cities like Detroit, Grand Rapids, Flint, Lansing, and Saginaw each have different rules for residents, non-residents, and businesses.

You can view the full list of cities with local income tax requirements on the Michigan Department of Treasury’s website.

Most Michigan LLCs must file their state tax returns by April 15. For help understanding your full tax obligations — and making sure nothing gets missed — check out our full Michigan LLC Tax Guide.

File Your LLC Annual Statement

Michigan requires LLCs to file an annual report, also known in the state as an annual statement, with the Department of Licensing and Regulatory Affairs. The deadline for this is February 15, and it can be filed online through the LARA Corporations Online Filing System (alongside a filing fee of $25).

Keep in mind that, if you form your LLC after September 30, you will not be required to file an annual statement on the due date immediately following your formation.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Michigan Business Resources