The Michigan LLC formation process is managed by the Licensing and Regulatory Affairs bureau (LARA, for short). LARA has a “Corporations Online Filing System” (COFS) where you can file your forms online. However, the website lacks clear instructions regarding exactly what forms you need to complete. Beyond the forms linked online, LARA also indicates that some forms are not available on the website, but it doesn’t explain which forms fall into this category or where to find them.
In reality, the formation process is incredibly simple, but LARA and other government resources make it difficult to ascertain what steps you need to take. For that reason, we at the MarketWatch Guides team recommend working with an LLC service provider to form your business in Michigan. These services have already aggregated the forms you need and will take care of submission for you, which simplifies a process that can otherwise become a major headache. We have researched several LLC service providers and found that most have a free starting plan, except for the $50 standard state filing fee that you must pay either way.
These companies also offer other helpful services and tools, such as registered agent services and LLC operating document templates. The other advantage of using an LLC service is that it can help you stay on top of ongoing requirements as laws and regulations change to ensure you stay compliant with the state. See our top three LLC services providers below.
If you would prefer to do it yourself, we created this guide to help you navigate how to start an LLC in Michigan.
Forms Required To File an LLC in Michigan
After sifting through Michigan’s LLC documentation, we discovered that to start a Michigan LLC, you only need to file one form — the articles of organization, which cost $50. The form is quite simple, requiring basic LLC information, such as business name, registered agent details and filer contact information. Note that different types of LLCs must file different versions of this form:
| Required Form | Applicable To |
|---|---|
| Articles of Organization (700) | Domestic LLCs |
| Articles of Organization (701) | Domestic professional LLCs (LLCs with members who are professionally licensed) |
| Articles of Organization (760) | Foreign LLCs (LLCs outside of Michigan that plan to do business in the state) |
You may file the applicable form online via LARA’s COFS system, or via mail or in person at the following addresses:
By Mail:
MI Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
Corporations Division
P.O. Box 30054
Lansing, MI 48909
In Person:
2407 North Grand River Ave.
Lansing, MI 48906
In addition to the filing fee above, Michigan offers expedited review of these documents for an additional fee, but it can cost up to $50 for a 24-hour turnaround and up to $1,000 for one-hour processing.
Read on for additional information to consider as you complete this form.
How To File an LLC in Michigan (3 Steps)
Once you have determined which form is relevant for your business, here are the steps to follow to prepare and file the form.
Step 1: Name Your Michigan LLC
Once you’ve decided on a name for your business, it’s important to perform an LLC name search to ensure there are no other businesses with the same or similar names. Luckily, Michigan makes this process easy using its lookup tool. We found a few features of this tool, including the “begins with” and “keyword” search functionalities, particularly helpful.
Michigan has a few requirements for your LLC name, including that you must include a designation that your business is an LLC. This means using either “Limited Liability Company” or one of the following abbreviations in your formal business name:
- Limited Company
- L.L.C.
- L.C.
- LLC
- LC
Inside Scoop:
If you have settled on a name but aren’t ready to complete the process to open your LLC, you can reserve it for six months for $25 through LARA’s online system. Additionally, you don’t have to do business under the formal name of your LLC. Michigan allows the use of “assumed” names for public business activities. These are also called “doing business as” (DBA) names. For these, you need to submit the Certificate of Assumed Name form for $25.
Step 2: Assign a Registered Agent
In the articles of organization form, you’ll notice spaces to provide registered agent details. Like all U.S. states, Michigan requires LLCs to have a point of contact with a physical address to receive important tax and legal documents on the business’ behalf. There must be someone available at this address during normal business hours to receive these documents. Michigan calls this person a “resident agent” or “registered agent.”
Many LLC service providers offer registered agent services as part of their formations packages. Bizee and Northwest offer these services for free for the first year when you file your LLC with them. Other companies typically charge $100 to $150 per year for this service. Many people opt to pay for a commercial agent for privacy reasons. First off, this keeps their home address from being published as their LLC’s registered office, which often becomes publicly available data. It also means that they can focus on business operations, knowing that their agent will receive and sort through mail and deliver just the important information to them.
Step 3: File Your Articles of Organization
Michigan filers need to have the following information ready when filling in their articles of organization:
- The proposed name of the LLC
- The purpose of the business (e.g., retail, consulting, etc.)
- The street address of the business
- The name and address of the resident agent
- Whether management falls to managers or non-member managers
- How long the LLC will last, if it isn’t perpetual
- Any provisions regarding operations (if you don’t intend to file a separate operating agreement, which isn’t required)
After Forming Your LLC
There are a few additional steps to complete once you’ve filed your initial form in Michigan.
Obtain an Employer Identification Number (EIN)
First, we recommend obtaining an employer identification number (EIN) from the Internal Revenue Service (IRS). This is a unique number that verifies your business’ identity for taxes and other purposes.
If you have a multi-member LLC or an LLC with employees, you are required to have an EIN. Technically, if you have a single-member LLC and no employees, you don’t need an EIN in order to do business, you’ll just use your Social Security number instead. However, using an EIN for business activity instead of your Social Security number can protect your privacy and identity. Plus, an EIN is free and simple to obtain from the IRS website.
Complete Your Beneficial Ownership Information (BOI) Reporting
According to the Corporate Transparency Act (CTA) that took effect on Jan. 1, 2024, all privately held companies registered to conduct business in the U.S. are required to disclose certain information to the Financial Crimes Enforcement Network (FinCEN). Eligible businesses must report:
- The company’s full legal name
- The company’s business address
- The state where the company was first formed or registered
- The company’s taxpayer identification number
- An identity document, such as the filed articles of organization
Companies that have “beneficial owners” must also share their legal name, date of birth, home address and provide a photocopy of their U.S. driver’s license or passport. A beneficial owner is any individual who controls at least 25% of an organization or directly or indirectly exercises substantial control in any of the following roles:
- The person serves as a senior officer, such as a president, CEO or general counsel.
- The person has authority to appoint or remove senior officers, board members or other similar roles.
- The person makes important decisions concerning the company’s finances and/or structure.
You can file the necessary forms using the BOI E-Filing System. If you start your business in 2024, you must do so within 90 days of official formation. Companies that form in 2025 and beyond have only 30 days to file these BOI Reports. Failing to meet these requirements can result in civil and criminal penalties.
Create Your Operating Agreement
An operating agreement is a tailor-made document outlining business practices and procedures. Though not required in Michigan, it can be vital to resolving any disagreements between members and managers. Operating agreements typically contain the following information:
- Member contribution to the LLC (e.g., cash, collateral, capital, real estate, etc.)
- Profit and loss distribution between members
- Schedule and method of profit distribution
- Members with banking account access
- Procedures if members pass away, sell their interest or retire
- Procedures for allowing new members to buy into the LLC
- Responsibilities for members with managerial power
- Voting procedures, including what to do in the event of a deadlock
Once drafted, all members should have an opportunity to review the operating agreement and make suggestions. When finalized, all members should sign and keep a copy of it. Many LLC formation services offer operating agreement templates as part of their packages or for separate purchase if you don’t want to start from scratch by creating it yourself.
Stay on Top of Your Annual Reports
Filing annual reports is the most critical aspect of preserving your LLC. Michigan’s annual report confirms that the LLC remains in business and has the same registered agent and address. The state may consider your LLC inactive if you do not file it on time, which means your business name would become available to any other company.
The Licensing and Regulatory Affairs bureau will send a pre-printed form to your business’ registered office 90 days before the due date. You can also file your annual report online. The filing fee is $25.
The Bottom Line
It’s quite simple to form a Michigan LLC, but specific instructions on the state’s government site, LARA, are hard to find. Our guide can help you navigate this process, but we encourage you to consider purchasing an LLC formation package from one of our recommended providers below. These services are often inexpensive compared to the value they offer. They will help ensure that your initial filing is successful and that you remain compliant with evolving rules and regulations.
Frequently Asked Questions
It costs $50 to file for an LLC in Michigan. Afterwards, it costs $25 to renew annually. This does not include the cost of using an LLC services provider to help you file your articles of organization, appoint a commercial registered agent or draft an operating agreement.
There are several benefits to starting your Michigan business as an LLC:
- Forming an LLC in Michigan offers limited liability protection, separating personal assets from business debts and legal liabilities.
- Michigan LLCs benefit from pass-through taxation, meaning that business profits and losses are reported on the owners’ individual tax returns. Though you can elect a different tax structure, this one makes filing your annual taxes easy.
- LLCs in Michigan have flexibility in terms of management structure, permitting members to choose between member-managed or manager-managed setups. That way, members can decide how involved they want to be in business operations.
You pay taxes on the income you receive from your LLC, but the amount and type of taxes depend on the nature of your business and how you elect to be taxed.
If your LLC follows the default partnership tax structure or elects to be taxed as an S-corporation, you need to pay Michigan’s Flow-Through Entity (FTE) tax each year. The tax only applies to certain incomes, so you aren’t subject to “double taxation,” which means paying taxes on income at the LLC level and at the personal income level. Instead, LLCs benefit from “pass-through taxation,” which means the tax liability “passes through” the LLC to its members who have to then report the LLC’s income on their personal tax returns.
Other taxes you may be subject to depending on your type of business include:
- International Fuel Tax Agreement (IFTA)
- Marijuana Retailers Excise Tax
- Michigan Business Tax
- Motor Fuel Tax
- Sales and Use Tax
- Severance Tax
- Tobacco Tax
- Withholding Tax
Partnership and Sole Proprietorship vs. LLC Taxes
Partnerships and sole proprietorships are “pass-through” or “flow-through” entities, meaning business income flows through to the members before it is taxed. This is the default tax status for LLCs.
Partnership and Sole Proprietorship vs. LLC Taxes
Partnerships and sole proprietorships are “pass-through” or “flow-through” entities, meaning business income flows through to the members before it is taxed. This is the default tax status for LLCs.
LLC vs. C-Corporation Taxes
Corporations, also called C-corporations, pay a corporate tax directly to the state on business income. That income is then distributed to owners who pay personal income taxes. An LLC can elect to be taxed as a C-corp by filing Form 8832 with the IRS. A tax professional will know whether it’s beneficial for your LLC to be taxed this way.
LLC vs. S-Corporation Taxes
Though the name may be misleading, an S-corp is not a business structure or an actual corporation — it’s a tax status created by the IRS. It allows LLC members to pay themselves a reasonable salary as employees and treat the rest of the income as business income that can stay in the business or be distributed to members as dividends. Members, or “employees” pay self-employment taxes on their salary portion of the income, and ordinary income tax on any additional income they receive, like dividends. An S-corp will likely only be a superior option for select businesses, so we recommend speaking to a tax professional to determine if this structure can be beneficial to your business.
How quickly can I get an LLC in Michigan?
Michigan LLC paperwork is usually within 10 business days when filed online and up to a few weeks if filed through the mail. Expedited processing times — as fast as one hour — are available for extra charges ($50 to $1,000 depending on the form and requested turnaround time).
Our Methodology
To provide consumers with objective and accurate information, our credentialed legal experts created a comprehensive rating system for Limited Liability Company (LLC) services. We researched five online LLC, registered agent and trademark registration services, including ZenBusiness, LegalZoom, Swyft Filings, Northwest Registered Agent and Bizee (formerly Incfile).
We conducted a survey in 2024 of 200 professionals who were currently using LLC services or had used LLC services within the past year. We analyzed the results of this survey to determine the following rating criteria:
- Features (20%)
- Value for Money (25%)
- Customer Service (20%)
- Usability (25%)
- Reputation and Credibility (10%)
Visit the full LLC methodology page for more details on our rating system.
Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
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| Provider | MarketWatch Rating | Full Review |
|---|---|---|
| ZenBusiness | 4.9 / 5 | ZenBusiness Review |
| Bizee | 3.9 /5 | Bizee Review |
| Rocket Lawyer | 4.1 /5 | Rocket Lawyer Review |
| Northwest Registered Agent | 3.8 /5 | Northwest Registered Agent Review |
| LegalZoom | 4.8 /5 | LegalZoom Review |
| LegalShield | 3.9 /5 | LegalShield Review |
| Tailor Brands | 3.8 /5 | Tailor Brands Review |
| Swyft Filings | 4.2 /5 | Swyft Filings Review |
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
