Registering an LLC in Michigan

Starting an LLC in Michigan can be a daunting task, but we can make it easier. Here at Michigan Registered Agents, we make the process easy and stress-free. We’ll take care of all the paperwork and filing, so you can focus on what matters most to you—running your business.

Benefits of Starting a Michigan LLC

There are many benefits to owning an LLC, including:

• Limited liability protection: If your LLC ever faces legal action, creditors will not be able to go after your personal assets to satisfy any business debts.

• Flexibility: You can choose to have your LLC managed by members or managers.

• Privacy: LLCs in Michigan are not required to list member/manager information on the articles.

• Tax benefits: By default, LLCs are taxed as pass-through entities. However, you can also choose to be taxed as an S corp or C corp.

If you are thinking about starting a business, an LLC is a great option to consider. Get started with out company formation service today for only $199.

Don’t Know Where to Begin? Here is How to Start a Michigan LLC 

Maybe you want to try your hand at forming an LLC yourself. We want you to succeed, so here’s a step-by-step guide to forming your LLC. If at any time you decide to let us take over, we’re here for you.

To start an LLC, you’ll need to complete the following steps:

1. Choose a name for your business

2. Get a Michigan registered agent

3. File the Articles of Organization

4. Create an operating agreement

5. Get an EIN

6. File Beneficial Ownership Information report

7. Open a business bank account

Choose a name for your LLC 

The name of your LLC must satisfy three state requirements:

1. Your business name must contain an identifier such as “limited liability company,” “LC,” or “LLC.” Keep in mind that your business identifier must be specific to an LLC. What does that mean? You can use words such as “corporation” or “nonprofit.” Unless your business is a nonprofit, you can’t imply otherwise.

2. Your company name must be distinguishable from other Michigan businesses. Why? Because the state doesn’t want ten auto shops called “Mike’s Garage LLC.” To make sure the name you want is available, you can search the Michigan Business Database.

3. You cannot use any restricted words. Michigan has a long list of words and phrases you can’t use or that require special permission. Most of them are obvious. For example, if you’re not a foot doctor, you can’t use any form of the word “podiatry” in your business’s name. Profanity is also a no-no. But, some restrictions, like not using “Woodsey Owl” (which would be a great name for a pub) are less obvious. Take a minute and scroll through the Michigan Restricted Words list to make sure your LLC’s name is in the clear.

Get a Michigan registered agent 

A registered agent (also called a resident agent) is a mandatory requirement from the Michigan Department of Licensing and Regulatory Affairs (LARA). A registered agent is a person or company residing in Michigan that is available during standard business hours to accept legal and state mail. That’s the basic explanation, but there are other requirements your Michigan registered agent will need to meet. For example, your registered agent needs to be 18 years or older and have a physical address in Michigan. But, the key to electing a strong registered agent is picking an individual or company that is reliable, professional, and experienced—a company like us.

File the Articles of Organization 

Once you have a business name and registered agent selected, you are ready to file your Articles of Organization with the Michigan Licensing and Regulatory Affairs (LARA). Here’s a breakdown of everything you’ll need to include:

1. The name of your LLC.

2. The purpose of your company.

3. The date your company will close (optional).

4. The name and physical address for your registered agent.

5. Additional provisions for your LLC. For example, if you plan to have your LLC managed by managers rather than members, you could indicate that here.

6. The signature of the person filing your articles.

To file your articles, you have three options: by mail, in-person, or online.

Mail:

Michigan Department of Licensing and Regulatory Affairs
Corporations Securities & Commercial Licensing Bureau
Corporations Division
P.O. Box 30054
Lansing, MI 48909

In-person:

Michigan Department of Licensing and Regulatory Affairs
2407 N Grand River Ave.
Lansing, MI 48906

Online:

LARA Corporations Online Filing System

Create an operating agreement 

An operating agreement is an optional document that may outline your company’s business structure, how the profits and losses are distributed, and the process to dissolve the LLC when and if that time comes. Although it’s optional, drafting up an operating agreement is a good move. Banks usually want to see an operating agreement before you can open a business account. And, if there’s ever a legal dispute, a well-crafted operating agreement can provide clarity. If lawyers get involved, you’ll want as much paperwork as possible to keep their billable hours down.

Get an EIN 

If you plan to hire employees, you will need to get an Employer ID Number (EIN) through the IRS. Even if you’re a single-member LLC with no employees, it’s still a good idea to get an EIN instead of using your social security number. EINs are often used for banking, taxes, and other business-related functions. You can apply for an EIN at no cost on the IRS website. Or for an additional $50, we’ll get an EIN for you when you sign up for our formation service.

File Beneficial Ownership Information report

Your Beneficial Ownership Information (BOI) report is a federal filing that provides the Financial Crimes Enforcement Network (FinCEN) with basic information about your LLC and the people with the most influence over your business. You’ll need to disclose name, address, and personal or tax ID details for your LLC, the individual(s) responsible for filing your Articles of Organization, and all individuals with substantial control over business decisions and/or who own at least 25% of your LLC.

Starting January 1, 2024, most new LLCs must file a BOI report within 30 days of company formation. If your LLC is formed before 2024, you have until January 1, 2025 to file. You can file online through FinCEN’s secure database for free, and the information you provide doesn’t go on the public record.

Open a business bank account 

Establishing a business bank account isn’t required by the state. However, it will help bolster your LLC’s liability protection by adding a layer of protection between your personal assets and your business’s assets. In addition, having a separate bank account for your LLC will make it easier to accept/make payments, keep your financial records organized, and identify potential tax-write offs.

Benefits of Hiring Us to Start Your Michigan LLC 

Here are just a few of the benefits of starting an LLC with us:

• We list our address on the Michigan articles as the principal and mailing address.

• We accept state and legal mail on your company’s behalf

• We scan business mail into your secure client portal within 24 hours

• We accept service of process and notify you immediately

• We include one year of Michigan Registered Agent Service

Get your business started with our Company Formation Service for only $199.

FAQs

How much does it cost to start an LLC in Michigan? 

Filing Articles of Organization costs $50 for standard processing—24 hours. However, if you’re in a real hurry, you can file your articles in person (before 1 pm) and pay an additional $500 for two-hour processing or $1000 for one-hour.

Do I need a DBA for my Michigan LLC?

Many companies choose to operate under an assumed name (also often called a DBA) because it allows for franchising and branding opportunities. If you’re interested in registering an assumed name, you can select our Trade Name Service inside your account after signing up for our LLC formation service. We will register your LLC’s assumed name for $125.

Do I need to file a Michigan Annual Statement?

Each year LARA will send a form to your registered agent 90 days before the annual statement ($25) is due on February 15. Mark your calendar. Either you or your registered agent will need to make sure the information populated on the form is correct and report any business-related changes. If your company was formed between September 30-December 31, you will not have to file a statement until the following year. If you fail to file the statement for two consecutive years, your company will no longer be in good standing and someone else may be able to claim your business name.

Do I need a Michigan business license?

Some businesses require certifications or licenses at either the state or local level. Checking what licenses you need will only take a few minutes, and it’s time well spent. The consequences of operating a business without a proper license can be severe. For more information, check out LARA’s state license page.