Forming an Michigan LLC
(2025 Guide)
2025 LLC Guide
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forms your LLC with Northwest for $39 (60% off). Details inside.
How to Start an LLC in Michigan (Step-by-Step Guide)
Discover how to start an LLC in Michigan, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Michigan, submit the Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs (LARA). This requires a fee of $50 and typically takes 10 days for processing and approval.
There are five steps to complete:
Choose a Name for Your LLC
Select a Registered Agent
File the Articles of Organization
Draft an Operating Agreement
Obtain an EIN
If you prefer to set up your LLC independently, refer to our comprehensive free guide below. Alternatively, for professional assistance, consider hiring Northwest Registered Agent.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
What is the cost to establish an LLC in Michigan?
Starting an LLC in Michigan requires a $50 fee. Additionally, there is a $25 annual fee. What do these fees cover? The $50 is for filing the Articles of Organization, which officially forms your LLC. The $25 yearly fee is for the Annual Report, a required filing to maintain your LLC’s good standing. For more details, refer to LLC Costs in Michigan.
Veterans: You are eligible to form an LLC at no charge in Michigan. Check Michigan Veteran LLC for detailed instructions.
How long does it take to form an LLC in Michigan?
When filing by mail, expect approval in 10 business days, plus mailing time. Filing online also results in approval within 10 business days. To verify any potential delays, consult How long does it take to get an LLC in Michigan.
Here’s how to establish an LLC in Michigan
1. Check Your LLC Name
Begin by checking the availability of your desired LLC name in the state. It’s crucial because two businesses cannot share the same name within the state.
First, conduct a search for your business name and compare it with existing businesses in the state. Utilize the Business Entity Search to ensure the LLC name you choose is distinct from those already registered.
Next, get acquainted with the state’s naming regulations to ensure your LLC name gets approved. We will provide more detailed information here: Michigan LLC Name.
Note:
Most people choose “LLC”.
2. Select a Michigan Registered Agent
The following step involves selecting a Registered Agent. A Michigan Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Michigan Limited Liability Company.
Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:
You
A friend or family member
A Registered Agent Service
Michigan mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.
If you lack an address in Michigan or desire increased privacy, you can opt for a Registered Agent Service for your LLC.
We suggest Northwest Registered Agent
One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.
Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.
Special offer:
Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.
(Read our Northwest Registered Agent review.)
3. Submit Articles of Organization
To establish an LLC, you must submit the Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs (LARA).
The cost for filing the Michigan Articles of Organization online is $50. This fee is a one-time payment to form your LLC. If you wish to handle this on your own, check out our detailed guide: Michigan LLC Articles of Organization. Alternatively, you can hire a company to manage it for you.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
4. Draft an LLC Operating Agreement
An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.
Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.
Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Michigan Operating Agreement video for a step-by-step guide on how to complete it.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Obtain an EIN for Your LLC
The following step is to secure a Michigan EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.
An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits
How much does an EIN cost? The IRS provides an EIN at no charge.
How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.
How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.
What should I do after my LLC is approved?
Once your LLC receives approval, there are a few further steps to consider.
Open a business bank account for your LLC.
Establishing a business bank account is crucial for streamlined accounting and clear financial record-keeping. This separation ensures your personal liability protection by keeping business finances distinct from personal ones.
Obtain necessary business licenses and permits
The good news is Michigan doesn’t require a general state-level business license. However, certain industries do need special licenses through LARA’s Corporations and Commercial Licensing Bureau. Depending on your LLC’s location, you might need a local business license or permit. For instance, starting a daycare might require a city or county business license. More details can be found on our Michigan LLC Business License page.
Submit your LLC Annual Report
Every Michigan LLC must file an Annual Report annually to maintain good standing with the state. Note: In Michigan, this is officially called the Annual Statement, but for simplicity, we’ll refer to it as the “Annual Report.”
What is the cost of a Michigan Annual Report? The filing fee is $25 per year.
When is the Annual Report due? Your LLC Annual Report is due by February 15th each year.
When is my first Annual Report due? Michigan determines your first Annual Report’s due date based on your LLC’s Date of Organization, which is the date your LLC was approved. If your Date of Organization falls between January 1 and September 30, your first report is due by February 15 of the following year. For example, if approved on January 23, 2025, your first report is due by February 15, 2026. If your Date of Organization is between October 1 and December 31, your first report is due by February 15 two years later. For example, if approved on November 3, 2025, your first report is due by February 15, 2027.
How do I file my LLC Annual Report? You can file online or by mail, with online filing being the simpler option. Follow our step-by-step guide here: Michigan LLC Annual Report.
File and pay taxes
LLCs themselves don’t pay federal taxes. Instead, the LLC Members pay taxes as part of their personal tax returns.
How will my LLC be taxed? By default, the IRS taxes an LLC based on the number of owners: A Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. You can also request the IRS to tax your LLC as a C-Corporation or S-Corporation. Besides federal taxes, state and local income taxes, as well as sales tax, may apply. Learn more in Michigan LLC Taxes.
Helpful Resources
How to Start an LLC in Michigan FAQs
Can I start an LLC online in Michigan?
Yes, you can submit your LLC application online. The fee for filing Articles of Organization is $50. Once submitted, your online LLC will be approved within 10 business days.
What are the benefits of an LLC?
One primary benefit of an LLC is the protection of personal assets. This means if your business faces a lawsuit, your personal assets—such as your home, vehicles, and bank accounts—are safeguarded. This protection extends to all LLC Members, whether it’s a Single-Member or Multi-Member LLC. Unlike a Sole Proprietorship or Partnership, LLCs shield owners from business debts and liabilities, making them a preferred business structure. Another advantage is pass-through taxation, where the LLC itself doesn’t pay federal income taxes. Instead, profits go directly to LLC Members, who then report them on their personal tax returns. Michigan state income taxes follow similar rules, recognizing federal tax treatment for LLCs. For further details, see How are LLCs taxed.
Is Michigan a good state to start an LLC?
Whether Michigan is a suitable place to start an LLC depends on your residence and business location. If you reside or operate in Michigan, then starting your LLC there is advisable. While some websites highlight tax benefits of specific states, these are irrelevant if it’s not where you reside and conduct business. For instance, forming an LLC in Delaware but living and doing business in Michigan means you’ll still need to register your Delaware LLC in Michigan (incurring additional fees) and pay Michigan taxes. This results in unnecessary expenses and complications with no real benefit. In conclusion, if you live and do business in Michigan, it’s a good choice for starting a business. Otherwise, it may not be ideal. However, for real estate purchases outside Michigan, form your LLC in the state where the property is located. For more insights, see Best State to Form an LLC.
What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?
The distinctions between Domestic LLCs, Foreign LLCs, and Professional LLCs lie in their formation location and business purpose. A Domestic LLC is formed in its “home state,” where the owner lives and conducts business. For example, if you reside and operate in Michigan, you’d form your Domestic LLC there. A Foreign LLC is established in a state other than its home state. Here, “foreign” indicates the LLC’s status relative to its home state. For instance, if you expand from Michigan into Ohio, you’d register your Michigan LLC as a Foreign LLC in Ohio. Essentially, LLCs are state-level entities, requiring registration in each state they operate. This involves forming a Domestic LLC in your home state and a Foreign LLC in another state.
### What is a PLLC?
A Professional Limited Liability Company (PLLC) is an LLC designed for offering “professional services.” Here, “professional” refers to businesses needing special permissions (like licenses or certifications) to operate legally. Professions such as architects, attorneys, social work counselors, doctors, and veterinarians often establish PLLCs. For more on PLLCs, their availability, and stricter requirements, explore What’s a Professional LLC? Additionally, for more on Foreign and Domestic LLCs, see: Foreign LLCs by State and Difference between Domestic LLCs and Foreign LLCs.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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