Michigan LLC Fees: How Much Does it Cost to Open a Michigan LLC?
This is an exciting time for your business if you’ve chosen to establish an LLC in the state of Michigan. Online LLC (limited liability corporation) formation in Michigan costs $50. When the LLC’s articles of organization are filed, this fee is sent to the Michigan Department of Licensing and Regulatory Affairs.
You’re probably prepared to establish your LLC and run the company of your dreams. But before you begin, it’s crucial to comprehend all of the different fees and other costs associated with establishing a Michigan LLC.
The majority of business owners are aware that they must pay a fee to the state in order to register their LLCs. However, we discover that some customers frequently are not aware of all the potential supplementary costs, such as taxes, annual report fees, registered agent service fees, and more. Let’s examine the potential costs associated with creating a Michigan LLC in detail.
- Get Professional Help to Form a Michigan LLC (from $0+State fees)
- Forming LLC in Michigan: Various Costs
- Total Costs for Michigan LLC Breakdown & Best Options
- Additional LLC Filing Fees
- How to Form a Michigan LLC on Your Own?
- Important Actions Following LLC Formation
- FAQ: Michigan LLC Costs
- Get Professional Help in Forming an LLC in Michigan
- In Conclusion
Forming LLC in Michigan: Various Costs
|Michigan LLC Online Filing Fee||$50|
|Annual Statement Fee for Michigan||$25|
|Resident Agent Fee||$39 on its 1st yr.|
|Fee for Establishing a Foreign LLC in Michigan||$50|
|Michigan LLC Name Reservation||$25|
|Doing Business As (DBA) Name||$25|
|Certified Document Copies||$16 + $1/pg.|
|Certificate of Good Standing||$10|
$50 – Michigan LLC Online Filing Fee
The $50 online filing fee for your LLC’s Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs is the principal expense associated with forming an LLC.
$25 – Annual Statement Fee for Michigan
LLCs must submit an annual statement—also known as an annual report—to the Department of Licensing and Regulatory Affairs in Michigan.
Through the Michigan LARA website, you may submit this form online. The deadline for the $25 filing fee is February 15. If you don’t file before the deadline, Michigan will fine you $50.
$39 on its 1st yr. – Resident Agent Fee
Although you are allowed to act as your own resident agent in Michigan, employing a resident agent service keeps your business compliant, informs you of crucial filing dates, and helps you avoid late fines.
$50 – Fee for Establishing a Foreign LLC in Michigan
You must register your LLC as a foreign LLC in Michigan if you already have an LLC that is registered in another state, and you want to grow your business there.
A foreign LLC in Michigan must be registered for $50. By submitting an Application for Certificate of Authority to Transact Business in Michigan, you can form a foreign LLC there (Form 760).
Business Licenses and Permits
Your company may require federal, state, and municipal permissions and licenses to lawfully operate in Michigan, depending on your sector and location. Whether you set up an LLC or another kind of business structure, this is true.
Total Costs for Michigan LLC Breakdown & Best Options
|Who forms the LLC?||Total fees|
|You form the LLC in Michigan yourself||$50 + ($25 Annual Statement + $25 LLC Name + $10 Certificate of Good Standing) = $110|
|by using ZenBusiness||$0 + state fees|
|by using Northwest Registered Agent||$39 + state fees|
|see our other top-rated LLC service providers||varies|
Additional LLC Filing Fees
When forming an LLC, there are additional payments that are optional:
$25 – Michigan LLC Name Reservation
By submitting an Application for Reservation of Name (Form 540) and paying the $25 filing fee, you can reserve your name for up to six months prior to the creation of an LLC.
$25 – Doing Business As (DBA) Name
To create a name different than your official LLC business name, submit a Certificate of Assumed Name (Form 541) and pay the $25 filing fee.
$16 + $1/pg. – Certified Document Copies
The Department of Licensing and Regulatory Affairs may provide certified copies of your Michigan business paperwork for a fee of $16 plus $1 per page if there are seven or more pages.
$10 – Certificate of Good Standing
A Michigan certificate of good standing can be ordered and purchased for $10 from the Department of Licensing and Regulatory Affairs. Banks and lending organizations frequently want a certificate of good standing.
How to Form a Michigan LLC on Your Own?
Michigan LLC – You must complete and submit the $50 Articles of Organization with the Michigan Corporations Division in order to establish a business as a Michigan LLC. Applying can be done in person, online, or by mail. The legal document that formally establishes your Michigan LLC is called the Articles of Organization. In Michigan, there are five basic steps to forming an LLC:
Step 1: Choose a Name for Your Michigan LLC [Price: $25]
The first and most crucial step in creating an LLC in Michigan is selecting a company name. Make sure the business name you select conforms with Michigan naming regulations and can be quickly found online by potential customers.
1. Adhere to the Michigan Naming Rules
Before you finish your company name search, we advise checking sure your name complies with the rules.
The first and most crucial step in establishing your LLC is selecting a company name. Make sure the name you select conforms with Michigan’s naming regulations and may be found online by potential customers.
Make careful you adhere to these naming rules:
- The words “limited liability corporation” or one of its acronyms must appear in your name (LLC or L.L.C.).
- Your company’s name in Michigan cannot contain any terms that may be mistaken for those of a public authority (FBI, Treasury, State Department, etc.).
- A licensed person, such as a doctor or lawyer, may be needed to be part of your Michigan LLC if the word “restricted” (such as “bank,” “attorney,” or “university”) is used.
2. Search for Michigan businesses by name
Use the Michigan Business Entity Search to look for available LLC names in Michigan before submitting your name reservation request. The best way to search is to enter the desired name, leaving off identifiers like “LLC,” and leaving all other boxes empty. All entities with the same or similar names will be returned by this.
If your company name consists of many words, you may even limit your search to the first two words to guarantee that you find every name that might be similar.
3. Lookup Domains That Are Available
Whether or not your preferred web domain name is available should be taken into account while choosing a business name. It’s crucial to have a URL that accurately reflects the name of your company. This apparently insignificant action can have a significant impact on how potential clients discover your company.
Use your favorite domain registration, such as GoDaddy, to do an internet search to find out if your desired URL is accessible.
4. Secure the name of your Michigan business entity
All inquiries and requests about LLC names are handled by the Secretary of State Corporations Division of Michigan. For six months after the month of filing, business names may be reserved.
You must submit an application online or by mail to reserve a company name. Applications may also be submitted by fax (517) 241-0538 or email ([email protected]). You must use this form to register for a MICH-ELF account if you email or fax an application.
There is a filing cost associated with reserving your name. Make checks payable to “State of Michigan” alone.
MICHIGAN LLC NAME RESERVATION
File Online with the State of Michigan
– OR –
File by Mail
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
P.O. Box 30054
Lansing, MI 48909
Does my business require a DBA or trade name? Most LLCs don’t require a DBA. You may brand your business using the name of the LLC, and you can also collect cheques and other forms of payment using that name. If you want to operate your business under a different name, you might want to file a DBA.
Step 2: Choose a Registered Agent [Price: $39 on its 1st yr.]
Every formal business in the state of Michigan is required by law to have a registered agent in the state of Michigan, also known as a resident agent. A registered agent receives all official correspondence from the State of Michigan and any service of process that may be delivered to a company in connection with a legal proceeding.
What Does A Registered Agent In Michigan Do?
An individual or company serving as your company’s point of contact in Michigan is known as a registered agent.
All correspondence with the State of Michigan, including the Michigan Annual Statement and certificate of good standing, is received by the company.
A registered agent is necessary by law for any formal business in Michigan, such as an LLC, corporation, etc.
In Michigan, is I allowed to act as my own registered agent?
If they are over 18 and have a Michigan street address, any owner or employee of a business may serve as its registered agent in Michigan.
If the candidate satisfies these criteria as well, you might even elect a member of your LLC or even a trusted friend.
Despite the fact that many companies choose to use a reputable registered agent service.
What is the price of a registered agent?
The annual cost of using a registered agent service ranges between $50 and $300. When you consider how much time it will save you, this investment is really minimal and well worth it.
In Michigan, how do I choose a registered agent?
When you finish your LLC’s Articles of Organization, you must choose your registered agent in Michigan. In Michigan, the primary document used to create an LLC is the Articles of Organization.
- Online registration agent selection
The MI Department of Licensing and Regulatory Affairs website allows you to create an LLC (a $50 filing fee is necessary). In Article IV of the online form, you must include the name and contact details of your registered agent.
- A Registered Agent Can Be Chosen Via Mail
Download the Articles of Organization, complete the necessary forms, and deliver a hard copy to the Department of Licensing and Regulatory Affairs to create your LLC by mail (LARA).
Is it worthwhile to use a Registered Agent?
A cost-effective option to handle government files for your LLC is to use a registered agent service. The benefits of using a reputable registered agent service typically surpass the annual fees for most firms.
Step 3: File Articles of Organization [Price: $50]
The LLC document you complete and submit to the state to create an LLC is called the Michigan Articles of Organization.
To get started, go to the instructions in the section below marked “How to File the Michigan LLC Articles of Organization.”
The Michigan Articles of Organization are Simple to File!
You may file the Michigan LLC Articles of Organization in three simple stages, which we’ll walk you through.
Stage 1: Purchase your articles of incorporation forms.
Your Michigan articles of organization can be downloaded and sent in, or they can be submitted online. Select your chosen method from the list below for this initial step.
To submit your articles of organization online, click the link below to go to the website of the Michigan Department of Licensing and Regulatory Affairs. Declare that you are creating a new entity on the sign-in page. then pick the relevant online form.
On the website of the Michigan Department of Licensing and Regulatory Affairs, you may download the Articles of Organization in PDF format. This form must be sent or delivered in person to the Corporations, Securities, and Commercial Licensing Bureau office of the Michigan Department of Licensing and Regulatory Affairs.
Stage 2: Complete the Articles of Incorporation
We will assist you with completing the Michigan Articles of Organization form in this phase.
To finish each Article, you must be aware of the following information:
- Company Name
- Business Objectives
- LLC’s Duration
- Name and Location of the registered agent
- Regulatory Authority
Although having a legally sound business name is necessary, having a creative and clever name is not as crucial.
Make sure the following while deciding on a name for your company:
Verify a name’s availability: Is Michigan a viable option for your name? Check the Michigan Department of Licensing and Regulatory Affairs website to see whether the name you desire is available.
For any legal or permissible activity, you can create a limited liability corporation in Michigan.
Remember that an IRS form or a professional license are required for any business purpose including licensing, tax exemption, or tax deduction status.
List the dissolution date here if your LLC is not permanent and has a scheduled end date.
Name and Location of the Registered Agent
On behalf of your LLC, a registered agent receives and transmits legal correspondence. You must specify your registered agent and registered office when you form your Michigan LLC.
Any Michigan resident over the age of 18 may serve as your registered agent. Throughout regular business hours, your registered agent must be accessible at the registered office.
Article 5 should be amended to reflect the fact that your LLC will be administered by managers rather than by members. Otherwise, it is presumed that the members of your LLC will be in charge of it.
Stage 3: Publish the articles of incorporation
You must submit the Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs in order to register your LLC.
You can submit your articles of organization in one of two ways:
FILE THE MICHIGAN ARTICLES OF ORGANIZATION
Option 1: On the website of the Michigan Department of Licensing and Regulatory Affairs, submit your articles of incorporation. Under “Domestic Limited Liability Company,” choose “700 – Articles of Organization,” and complete the necessary details.
– OR –
Option 2: On the website of the Michigan Department of Licensing and Regulatory Affairs, you may download the Articles of Organization in PDF format.
State Filing Cost: $50, the Michigan Department of Licensing and Regulatory Affairs should get payment (nonrefundable)
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau — Corporations Division
P.O. Box 30054
Lansing, MI 48909
2501 Woodlake Circle
Okemos, MI 48864
How long will it take to incorporate my Michigan LLC? 3 to 5 business days by mail, although it may be expedited for an extra cost, and it’s available online 24/7.
What distinguishes a local Michigan LLC from a foreign LLC? When an LLC operates in the state in which it was created, it is referred to as a “domestic LLC.” Usually, when we talk about an LLC, we’re talking about a domestic LLC. When an existing LLC wants to take its operations to another state, a foreign LLC must be created.
Step 4: Create an Operating Agreement [Price: FREE]
To safeguard their company’s operations, every Michigan LLC owner should have an operating agreement in place. Although it is not legally needed by the state, having an operating agreement will establish your legitimacy as a legal company and put forth clear guidelines and expectations for your LLC.
What Is An Operating Agreement For A Michigan LLC?
An LLC’s ownership structure and operational operations are described in an operating agreement, a legal document.
Whether you’re forming a single-member or multi-member LLC, your operating agreement should include all of the topics listed below. Some of these rules will have minimal effect on the day-to-day operations of a single-member LLC, but they must be included for legal reasons.
- Organization: Consider when the LLC was officially formed, who its members are, and how ownership is allocated. Multi-member LLCs may have equal ownership or may assign various “units” of ownership to different members.
- Voting and management: Determine whether the LLC will be controlled by its members or by appointed management, and how members will vote on business issues. Each member typically has one vote, although you may want to delegate more authority to specific members than others.
- Capital Contributions: The amount of money each member invests in the company. This is also the time to consider how you will raise additional funds in the future.
- Distributions: Profits and losses will be paid among members based on the distributions. The most common strategy is to split profits evenly. If you want them distributed differently, you should state how in your operating agreement.
- Membership Structure Changes: How will roles and ownership be transferred if a member leaves the organization? It is vital to clearly out the method for buying out and/or replacing a member in the LLC’s governing document.
- Dissolution: If all of the members of your LLC decide that you no longer wish to do business, you should properly dissolve it. A critical component of your operating agreement is the mechanism for possibly terminating your firm.
Why Do I Need An Operating Agreement For Michigan LLC?
You should draft an operating agreement regardless of the kind of Michigan LLC you’re forming. This is why:
- The state advises against it. Every Michigan LLC may establish a formal operating agreement to regulate the business’s operational policies in accordance with Michigan Business Statutes Section 450.4102(r).
- It will stop disagreements amongst your company partners. An operating agreement will help your team avoid misunderstandings when you’re forming a multi-member LLC by clearly defining each partner’s job and obligations.
- Your limited liability status is maintained as a result. Having an operating agreement will assist to guarantee that your limited liability status is sustained by court authorities if you are the only owner of a single-member LLC in Michigan and will increase the credibility of your company as a whole.
Is my operating agreement need to be filed with the state? No. You should preserve a copy of the Michigan LLC operating agreement on file as an internal record for future use. However, a lot of states do have laws requiring operating agreements for LLCs.
Step 5: Obtain an Employer Identification Number [Price: FREE]
Employer Identification Number is referred to as EIN. The Internal Revenue Service (IRS) issues EINs, which are nine-digit numbers, to assist identify firms for tax reasons. In essence, it serves as a company’s Social Security number.
An EIN is also known as a Federal Tax Identification Number (FTIN) or a Federal Employer Identification Number (FEIN) (FTIN).
I need an EIN, but why? An EIN is necessary for:
What if my single proprietorship already has an EIN? When transitioning to an LLC, the IRS mandates that sole proprietorships get a new EIN.
How can I obtain an EIN? The IRS offers an EIN for no cost. It’s simple to obtain an EIN, and you may do it online or by mail.
EIN APPLICANTS FROM AROUND THE WORLD: An EIN may be obtained without an SSN.
GET AN EIN
Option 1: Request an EIN from the IRS
– OR –
Option 2: Apply for an EIN by Mail or Fax
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
If I don’t have a social security number, how can I get an EIN? Obtaining an EIN does not require an SSN. Section 7b of IRS Form SS-4 can be left empty when completed. To finish your EIN application, call the IRS at (267) 941-1099. Find out more information about applying as a foreign applicant.
What tax arrangement ought to I pick for my Michigan LLC? The many possibilities for tax categorization will be explained to you when you apply for an EIN. The default tax status is chosen by most LLCs. However, by selecting the S corporation (S corp) classification, some LLCs can lower their federal tax requirement. Read our tutorial on LLC vs. S Corp for more information.
Does my LLC require an EIN? Any LLC with more than one member or with workers is required to get an EIN. The IRS demands that you do this.
Important Actions Following LLC Formation
Keep Personal and Business Assets Separate
Your personal assets—your house, vehicle, and other valuables—are at danger if your Michigan LLC is sued while your personal and business accounts are combined. This is known as “piercing the corporate veil” in business law.
With the following actions, you may begin defending your LLC in Michigan:
1. Open a business checking account.
- This will help you preserve your personal assets by keeping them separate from those of your firm.
- simplifies bookkeeping and tax filing.
2. Obtaining a business credit card:
- Aids in classifying and separating all business costs for the purpose of year-end taxation.
- increases your business credit score, which is a necessary step to obtaining a line of credit or loan in the future.
- gives you the ability to keep track of departmental spending by giving each employee a card with a different budget.
3. Employing a business accountant:
Helps you avoid penalties, fines, and other expensive tax blunders while preventing your company from overpaying taxes.
- gives you more time to concentrate on your expanding business by simplifying bookkeeping and payroll.
- properly manages your business finance, identifying areas of unplanned loss or additional profit
Keep within the law if you intend to employ people for your company by doing the following:
- Make sure new hires are eligible to work in the US.
- Report workers to the state as “new hires.”
- Employees should have access to workers’ compensation insurance.
- tax withheld from employees.
- Posters about workplace compliance should be printed and displayed in prominent locations.
What is the Michigan state minimum wage? In Michigan, the hourly minimum wage is $9.87.
- Open a bank account for your company.
- State and federal tax filing and management
- Employ personnel
In Michigan, different restrictions apply depending on your line of work.
FAQ: Michigan LLC Costs
Does the cost of a Michigan LLC need to be paid annually?
Yes, there is an annual statement cost of $25 for your Michigan LLC.
Is an LLC actually required?
Limited liability protection is offered by an LLC. In the case of a company failure, such as a lawsuit or unpaid debt, an LLC safeguards your personal assets.
What is the most affordable way to form an LLC?
By handling the LLC formation process on your own, creating your own operating agreement, acting as your own agent for service of process, and obtaining your own EIN, you may save money on the purchase of an LLC.
How much does it cost to create a Michigan LLC at the very least?
The lowest fee for forming an LLC in Michigan is $50, which includes the cost of submitting your articles of organization. Other up-front costs for forming a Michigan LLC are all optional.
What is the price to establish a corporation in Michigan?
In many states, forming an LLC is less expensive than incorporating a firm as a corporation. The cost of your Articles of Organization (the legal document that establishes a corporation) fluctuates in Michigan based on the number of shares your company issues. The minimum charge is $50 (plus a $10 processing fee), but if you issue more than 10,000,000 shares, the amount increases even more. The cost may go beyond $500.
How much time is required to create my Michigan LLC?
Depending on how you submit your form, the Michigan Department of Licensing and Regulatory Affairs handles your paperwork. The state typically processes the Articles within 24 hours of receiving an online filing. However, it will take 3-5 business days if you file by mail. Options for expediting range widely, starting at $50 for 24-hour processing and going up to $1,000 for one-hour processing.
How much does annual LLC maintenance in Michigan cost?
That mostly relies on the license requirements for your company, since some sectors demand yearly or semi-annual renewals. You will have to pay yearly maintenance costs if your industry mandates them. However, every firm will be subject to at least one annual cost: the $25 Annual Statement fee.
Where can I obtain additional details regarding the costs incurred by Michigan LLCs?
On this page, the Corporations Division of the Department of Licensing and Regulatory Affairs offers an exhaustive list of all available LLC forms (together with the associated costs).
How many small firms are now operating in Michigan?
In Michigan, there are now more than 902,000 small companies functioning, making up all but 0.4 percent of the state’s enterprises. One of these companies employs just over 48% of the labor force in Michigan.
What are the best government-sponsored resources for businesspeople?
A great resource for small company entrepreneurs is the Michigan Small Business Development Center. They provide a variety of free and inexpensive services, including money raising, company planning, and business education. It’s an excellent tool for anyone launching a business in the region.
Get Professional Help in Forming an LLC in Michigan
It can be difficult and time-consuming to form a Michigan LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.
#1 – Create an LLC in Michigan Using Northwest Registered Agent
With decades of expertise, Northwest Registered Agent is an exceptional LLC creation service. They deliver excellent, well-informed customer service. Their biggest benefit, though, is the seclusion they provide. They don’t outsource any of their services to third parties, don’t sell your information, and even build their own code.
Northwest can help you form an LLC in Michigan right now. They have a customer satisfaction rating of 98 percent and over 4850 verified reviews. They’ll come with a complimentary year of registered agent service!
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
#2 – ZenBusiness can help you form an LLC in Michigan
ZenBusiness provides LLC creation services at a low cost and with several useful features. Most LLCs will benefit from two of these aspects. All ZenBusiness’s products include a year of complimentary registered agent service. With their Pro and Premium Packages, they offer ensure worry-free compliance. ZenBusiness will file your yearly report and notify you if there is anything further you need to do to follow the state under this assurance. For $119 per year, those with the basic package can purchase worry-free compliance.
ZenBusiness will help you form an LLC in Michigan from $0+state fees. They have a customer satisfaction rating of 98 percent and over 4500 verified reviews.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
In this post, we’ve covered a lot of Michigan LLC expenses, some of which are common to all LLCs in the state. As you can see, there are a lot of costs that specifically apply to specific LLCs. The most essential lesson to learn is that you shouldn’t look for excuses to avoid paying these fees because the repercussions might be serious and are simply preventable.
In addition, starting a Michigan LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:
- $0 + state fees if you’re forming a basic LLC with all the basic options with ZenBusiness (only via our link).
- $39 + state fees if you’re forming a top-notch LLC with Northwest (only via our link).
- ~$150+ if you’re forming an LLC yourself.
That said, there are still some ways you may choose an economical business formation organization to handle your Articles of Organization filing and offer registered agent service, which is one way you can still make financially wise selections regarding your LLC formation and maintenance charges.