Michigan LLC Formation Guide: Filing Fee and Steps (2025)

Starting a Limited Liability Company (LLC) in Michigan is a straightforward process, but understanding the steps, fees, and compliance requirements is essential for keeping your business in good standing. This guide provides a comprehensive overview of forming an LLC in Michigan based on official state procedures.

Michigan LLC Formation Costs (2025)

Michigan is known for having relatively low LLC formation and maintenance costs compared to many other states.

Step-by-Step Michigan LLC Formation Process

1. Choose Your LLC Name

• Your LLC name must be unique and comply with Michigan naming rules.

• Must include one of the following: “Limited Liability Company,” “LLC,” or “L.L.C.”

• Cannot be deceptively similar to existing Michigan businesses.

• Verify availability using Michigan’s Business Entity Search.

• Optional: Reserve the name for 6 months for $25 to ensure no one else can register it before you file.

2. Appoint a Registered Agent

• A Registered Agent (also called Resident Agent) is required for every Michigan LLC.

• Must have a physical street address in Michigan (P.O. boxes are not allowed).

• Responsible for receiving legal documents, official notices, and service of process.

• Eligible options:

  • Yourself as a Michigan resident

  • Another individual resident of Michigan

  • Professional Registered Agent service (if privacy or convenience is desired)

• The agent’s name and address are publicly listed, so ensure reliability and availability during business hours.

3. File Articles of Organization

• The Articles of Organization officially creates your LLC in Michigan.

• Filed with the Michigan Department of Licensing and Regulatory Affairs (LARA).

• Filing fee: $50 (one-time).

• Processing time: Approximately 10 business days online; paper filings may take longer.

• Required information includes:

  • LLC name

  • Registered Agent’s name and address

  • Organizer(s) information

• Filing the Articles of Organization is the legal step that establishes your LLC as a recognized entity in Michigan.

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4. Create an Operating Agreement

• Not legally required in Michigan but highly recommended for legal clarity.

• Serves as an internal document detailing:

  • Ownership structure and member percentages

  • Management type: member-managed or manager-managed

  • Voting rights and decision-making processes

  • Profit allocation among members

  • Procedures for adding or removing members, or dissolving the LLC

• Helps separate personal and business liability, supports banking operations, and is valuable in legal disputes.

• The Operating Agreement should be kept in company records but does not need to be filed with the state.

5. Obtain an Employer Identification Number (EIN)

• Required for federal tax filings, hiring employees, and opening a business bank account.

• Issued by the IRS free of charge.

• Application can be completed online if you have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

• Non-U.S. residents may apply by mail or fax using IRS procedures.

• Your EIN identifies your LLC for tax purposes and is essential for legal compliance and banking operations.

Ongoing Compliance Requirements

• Biennial Statement: File every two years with LARA; $25 fee.

• Registered Agent: Maintain current agent information with the state; update if it changes.

• Business Licenses and Permits: Obtain any necessary local or state licenses for your industry.

• Record-Keeping: Maintain accurate company records, including Articles of Organization, Operating Agreement, and tax filings.

Failing to meet these obligations can result in late fees, penalties, or administrative dissolution of your LLC.

Summary

Forming an LLC in Michigan requires careful adherence to official state requirements. The steps include selecting a unique name, appointing a Registered Agent with a physical Michigan address, filing the Articles of Organization with LARA for a $50 fee, drafting an Operating Agreement, and obtaining an EIN from the IRS. Ongoing compliance includes filing a biennial statement every two years and maintaining proper company records. Michigan’s low formation costs, straightforward procedures, and simple maintenance make it an attractive option for entrepreneurs seeking liability protection and flexibility.

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