How Much Does It Cost to Start an LLC 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.

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.

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

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.

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:

• Opening a business bank account
• Hiring employees

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.