Last Updated: February 16, 2024, 1:14 pm by TRUiC Team


How Much Does It Cost to Start an LLC in Michigan?

The cost to start an LLC (limited liability company) online in Michigan is $50. This fee is paid to the Michigan Department of Licensing and Regulatory Affairs when filing the LLC’s Articles of Organization.

We recommend Northwest ($29 + State Fees) to help form your LLC.

An entrepreneur counting money with the state fee in the foreground

How Much Does an LLC Cost in Michigan?

Michigan LLC Online Filing Fee: $50

The main cost to start an LLC in Michigan is the $50 fee to file your LLC's Articles of Organization online with the Michigan Department of Licensing and Regulatory Affairs.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Michigan

If you already have an LLC that is registered in another state and you’d like to expand your business into Michigan, you’ll need to register your LLC as a foreign LLC in Michigan.

The cost for registering a Michigan foreign LLC is $50. You can register a foreign LLC in Michigan by filing an Application for Certificate of Authority to Transact Business in Michigan (Form 760).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to six months prior to LLC formation by filing an Application for Reservation of Name (Form 540) and paying the $25 filing fee.

Assumed Name

File a Certificate of Assumed Name (Form 541) and pay the $25 filing fee to create a name other than your legal LLC business name.

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Ready to Start Your Michigan LLC?

Read our top LLC formation services review to choose the right service for you.

Michigan LLC Annual Fees

When considering starting a limited liability company (LLC) in Michigan, it is important to understand the ongoing costs associated with maintaining an LLC. 

By taking these costs into account, you can estimate the total expenses of running an LLC in Michigan.

Here are the primary ongoing costs for a Michigan LLC:

  • Annual Statement Fee: LLCs in Michigan are required to file an Annual Statement with the Department of Licensing and Regulatory Affairs. The fee for filing this annual report is $25.
  • Resident Agent Fee: All Michigan LLCs must appoint a resident agent, more commonly known as a registered agent. The fee for this will depend on whether or not you act as your own agent or choose to hire a third-party service. Registered agent services typically cost $100–$200 per year.

How to Register a Michigan LLC Yourself

Establishing your own LLC in Michigan is simple. By following the steps below, you can register your Michigan LLC easily.

Recommended: Using an LLC formation service like Northwest ($29 + State Fees) saves time and ensures compliance. Besides the low cost, we like their streamlined approach and excellent customer service.

Seven Basic Steps to Start an LLC in Michigan

Step 1: Name Your Michigan LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File the Annual Statement
Step 7: Keep Your Company Compliant

Step 1: Name Your Michigan LLC

When you name your Michigan LLC, you’ll need to choose a name that:

  1. Is available for use in the state of Michigan
  2. Meets Michigan naming requirements
  3. Is available as a web domain

Recommended: Visit our Start an LLC in Michigan guide for detailed naming rules and instructions for registering a business name in Michigan.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Find a Domain Now

Step 2: Choose a Registered Agent

All LLCs in Michigan must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Michigan registered agent must be:

  • At least 18 years or older
  • Have a physical address in Michigan
  • Available during normal business hours to accept service of process

Get Free Registered Agent Services

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge.

Step 3: File the Articles of Organization

The Michigan Form 700 - Articles of Organization is a document that is filed with the Michigan Department of Licensing and Regulatory Affairs to form an LLC. The fee for filing the Articles of Organization is $50 online, by mail, and in person.

For detailed instructions for completing the Articles of Organization, visit our How to File the Michigan Articles of Organization guide.

File the Michigan Articles of Organization

OPTION 1: File Online With the Michigan LARA Website

File Online

- OR -

OPTION 2: File Form 700 by Mail or In Person

Form 700

State Filing Cost: $50, payable to the Department of Licensing and Regulatory Affairs

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
2501 Woodlake Cir.
Okemos, MI 48864

Step 4: Create an Operating Agreement

An operating agreement isn't required for Michigan LLCs, but it's a good practice to have one.

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

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Michigan LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

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

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Free EIN: You can get an EIN from the IRS website (free of charge) after forming your business.

Step 6: File the Annual Statement

Michigan requires LLCs to file an annual report, known in the state as an annual statement, with the Department of Licensing and Regulatory Affairs. This can be done online for a filing fee of $25. If you form your LLC after September 30, you're not required to file an annual statement on the due date immediately following your formation.

Your LLC's annual statement is due by February 15 each year. Michigan charges a $50 late fee for missing this filing deadline.

Step 7: Keep Your Company Compliant

Ensuring the ongoing regulatory compliance of your Michigan LLC is crucial for smooth operations and legal peace of mind. 

From adhering to tax obligations to meeting employment regulations, understanding and complying with these requirements can protect your LLC from potential fines and legal issues. 

  • Licensing and Permits: Your Michigan LLC needs to comply with federal, state, and local laws. The type and cost of required licenses and permits depend on your business nature. Consider using a professional service to help identify your licensing needs.
  • Michigan LLC Tax Responsibilities:
    • Sales Tax: Physical goods sellers need to register for a seller's permit. The state sales tax rate is 6%, with some exceptions taxed at 4%.
    • Employer Taxes: Register for Unemployment Insurance Tax and Employee Withholding Tax if you employ individuals in Michigan.
    • Income Tax: The state levies a flat tax rate of 4.05% irrespective of LLC income. For federal taxes, use Form 1065 (multi-member LLCs) or Form 1040 Schedule C (single-member LLCs).
  • Employee Hiring: For businesses employing staff, remember to verify the US work eligibility of new hires, report newly hired employees to the state, secure workers' compensation insurance, handle employee tax withholdings, and display compliance posters within your workplace.

For further information, check the Michigan LARA guide for employers.

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Steps After LLC Formation

Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.

Visit our After Forming an LLC guide to learn more.

Michigan LLC Cost FAQ

In Michigan, you have the option to submit the Articles of Organization for your LLC online, by mail, or in person. Along with the Articles, you'll need to include the $50 filing fee. These should be sent to the Michigan Department of Licensing and Regulatory Affairs.

Yes, having a resident agent is a necessity for your Michigan LLC. This person or entity agrees to accept legal papers on your LLC's behalf. However, your resident agent does not need to sign any consent form.

You can change the resident agent of your LLC in Michigan after its formation. Similar to assigning your initial agent, your new resident agent does not need to provide any official consent to accept this role change.

In Michigan, a DBA name, or “doing business as” name, is referred to as an assumed name. You need to register this name if your LLC operates under a name different from its legal name. But, if you plan to conduct business under the original name of your LLC, you won't need an assumed name.

In Michigan, LLCs are obligated to file an annual statement. This document, which costs $25 to file, keeps the state updated with your business's contact and ownership information.

Besides the cost associated with filing the annual statement, Michigan does not impose specific state compliance fees for LLCs. However, for the most up-to-date and accurate information, you should always verify with the Michigan Department of Licensing and Regulatory Affairs.

Before you file your Articles of Organization in Michigan, it's a good idea to make sure that your chosen LLC name is available. This can be done using the Michigan Department of Licensing and Regulatory Affairs' Business Entity Search.

In Michigan, a Certificate of Good Standing is a document issued by the Department of Licensing and Regulatory Affairs. It confirms that your LLC is legally registered and has complied with all state requirements. This certificate can prove useful when you are applying for business loans, opening business bank accounts, or dealing with other business transactions.

Article Sources

Michigan Department of Licensing and Regulatory Affairs
https://www.michigan.gov/lara

Internal Revenue Service (IRS)
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Michigan State License Search
https://www.michigan.gov/som/government/state-license-search

Small Business Administration
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Local Government Offices
https://www.michigan.gov/treasury/local/local-government-contact-information