Cost to Form an LLC in Michigan

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

There are two options for forming your LLC:

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Have a professional service form an LLC for you:

TWO SUCH RELIABLE SERVICES:

four point six out of five ZenBusiness ($39 + State Fees)

Three out of Five Stars LegalZoom ($149 + State Fees)


How Much Does an LLC Cost in Michigan?

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

Some businesses may need business licenses and/or permits to operate.

Michigan LLC Online Filing Fee: $50

To form an LLC in Michigan, you'll need to file the Articles of Organization (Form 700) with the Department of Licensing and Regulatory Affairs. The Michigan Department of Licensing and Regulatory Affairs charges a $50 fee to process and record this document online, by mail, or in person.

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You can form an LLC in Michigan yourself with our free How to Start an LLC in Michigan guide and pay only the $50 fee.

Or, visit our Best LLC Services review to learn more about the cost of using an LLC formation service.

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).

Other LLC Filing 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.

Doing Business As (DBA) 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.

Certified Document Copies
Obtain certified copies of your Michigan business documents by ordering through the Department of Licensing and Regulatory Affairs and paying $16 + $1 per page if 7 pages or more.

Certificate of Good Standing
You can obtain a Michigan certificate of good standing by ordering through the Department of Licensing and Regulatory Affairs and paying the $10 fee. A certificate of good standing is often required by banks and lending institutions.

Business Permits and Licenses

Depending on your industry and geographical location, your business might need federal, state, and local permits/licenses to legally operate in Michigan. This is true whether you form an LLC or any other type of business structure.

Learn more about state and local licensing with our guide to getting a Michigan Business License.

Recommended: Have a professional service research business licenses for you.

Ongoing LLC Maintenance Costs

Some businesses will be required to pay ongoing maintenance costs and taxes, such as the Michigan annual statement fee.

Michigan Annual Statement Fee: $25

Michigan requires LLCs to file an annual statement, also called an annual report, with the Department of Licensing and Regulatory Affairs.

You can submit this form online through the Michigan LARA website. The filing fee is $25, and it is due on February 15. Michigan charges a $50 penalty for failure to file on time.

How to Register a Michigan LLC Yourself

Forming an LLC yourself is easy; just follow the five steps below.

Recommended: If you already have a business that is running as a sole proprietorship, visit our How to Change from a Sole Proprietorship to LLC page.

Five 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 1: Name Your Michigan LLC

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

  • Is available for use in the state of Michigan
  • Meets Michigan naming requirements
  • 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

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

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
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Recommended: Get a free year of registered agent services when you hire ZenBusiness to form your LLC. $39 (plus state fees).

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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.

Hiring an LLC Formation Service

LLC formation services make the process of setting up your business easier, but they aren't required. Below, we cover what you can typically expect to pay to an LLC formed for you.

Basic LLC Formation Service Package: $39-$79

Online services like ZenBusiness and LegalZoom will take care of the LLC filing process on your behalf for a fraction of the cost of a business attorney.

In addition to filing your Articles of Organization, LLC formation providers offer other services. LLC formation services will also:

Operating Agreement: $40-$99

Purchasing a custom operating agreement from an online formation service is an easy way to ensure you’ll have a thorough and legally-binding document governing your new LLC.

EIN Registration: $60-$70

After forming your LLC, you’ll need to get an EIN. If you’d prefer not to apply for your EIN directly through the IRS, you can delegate this task to your formation provider for an extra fee.

Registered Agent Service: $0-$125 per year

You'll need to designate a registered agent for your Michigan LLC when you complete the Articles of Organization with the Department of Licensing and Regulatory Affairs.

A registered agent is an individual or business entity responsible for receiving and processing legal documents and service of process on behalf of your business.

While Michigan doesn't prohibit business owners from acting as their own registered agents, many people choose to appoint a professional for the sake of privacy, convenience, and discretion.

Learn more about hiring a registered agent in our Should I Hire a Registered Agent Service guide.

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Recommended: Get a free year of registered agent services when you hire ZenBusiness to form your LLC. $39 (plus state fees).

ZenBusiness

Business License Research Service: $99

If your LLC requires several federal, state, and local permits or licenses in order to operate legally, you might want to consider hiring a professional business license research service.

If you’re looking to maximize your time in the early phases of your business, we recommend checking out Incfile's $99 business license research package.

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Set up an LLC in Michigan Yourself in Five Basic Steps

Michigan LLC

Michigan LLC Cost FAQ

Do you have to pay for a Michigan LLC every year?

Yes, you must pay a $25 annual statement fee for your Michigan LLC every year. Visit our Michigan Annual Report guide for more information.

Is an LLC really necessary?

An LLC provides limited liability protection. This means an LLC protects your personal assets in the event of a business loss, such as a lawsuit or unpaid debt.

We recommend any small business that carries even the smallest amount of risk or liability to form an LLC. Learn more in our Should I Start an LLC guide.

What is the cheapest way to get an LLC?

You can save money on getting an LLC by completing the formation process yourself, making your own operating agreement, being your own registered agent, and getting your own EIN.

Check out our How to Save Money Forming Your LLC guide to learn more.

Is creating an LLC free in Michigan?

No, creating an LLC in Michigan is not free. There is a $50 registration fee to form a Michigan LLC.

Can I pay myself a salary from my LLC?

You can pay yourself a salary from your LLC, but it would be called a draw or distribution if your LLC is taxed in the default way by the IRS.

Visit our How to Pay Yourself from an LLC guide to learn more.

Is an S corp better than an LLC?

An S corporation (S corp) is an IRS tax status, not a type of business entity. An LLC can be taxed in the default way or as an S corp. For some businesses, being taxed as an S corp can make lots of sense.

Check out our LLC vs. S corp guide to find out if S corp status is right for your business.

Is LegalZoom worth it for an LLC?

LegalZoom creates more LLCs than any other provider. However, they also have mediocre reviews and charge more than any other service provider. We think there are better LLC formation services out there.

Check out our Best LLC Services review to learn more.

What’s better sole proprietorship or LLC?

A sole proprietorship is only good for businesses that carry very low risk of liability because sole proprietorships don’t offer any liability protection.

Learn more in our sole proprietorship vs. LLC guide.

What all can you do with an LLC?

There are many advantages to starting an LLC. Visit our guide to learn more about the benefits of an LLC.

Does having an LLC help with taxes?

An LLC can help with taxes if your business needs more options. An LLC can be taxed via pass-through taxation, as an S corp, or as a C corporation (C corp).

Visit our Choosing a Business Structure guide to learn what type of business structure would offer the most tax benefits to your unique business.

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