How Much Does an LLC Cost in Michigan

Written by: Mary Gerardine

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How Much Does an LLC Cost in Michigan

The minimum LLC Cost in Michigan is $50, which covers the processing fee for filing your LLC formation document (known as the Articles of Organization).

Having said that, the total cost of forming a Michigan LLC will depend on several factors, including your personal preferences and business needs.

In our How Much Does an LLC Cost in Michigan article, we’ve broken down everything you need to know about the different costs associated with launching and maintaining an LLC.

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LLC Cost in Michigan

In the table below, you can find a summary of the main requirements of forming a Michigan limited liability company (LLC) and their associated fees.

Articles of Organization$50
Registered Agent$0-$130+
LLC Name$0-$50
Operating Agreement$0+

Michigan LLC Filing Fee ($50+)

All LLCs in Michigan must file their respective formation documents with the Michigan Corporations Division in order to register with the state.

While every domestic LLC must file the Articles of Organization, you will need to submit a Certificate of Authority if you’ll be registering as a foreign LLC.

The processing fee for either one of those documents is $50, which is the minimum cost for registering an LLC in the state.

If you choose to use an LLC formation service, the cost will be a little higher as it will include a small service fee in addition to Michigan’s state filing fee.

The average LLC formation service cost can range significantly, but can start from as low as $29, increasing if you decide to purchase any additional offerings (i.e., EIN, business bank account, etc.).

Note: For more details on the formation process, you can check out our in-depth Michigan LLC Formation guide.

Michigan Registered Agent ($0+)

As part of the process of filling your Articles of Organization (or Certificate of Authority), you’ll need to appoint a registered agent. This is a person or entity that you must assign to receive tax and other governmental correspondence on behalf of your Michigan LLC.

While you can act as your own registered agent at no cost, it’s often recommended to hire a professional service in order to avoid any potential penalties or legal issues caused by non-compliance with state regulations.

It can also be a great way of ensuring that your personal information is kept private (i.e., out of public records).

Although the exact cost of these professional registered agent (RA) services is unique to each provider, they typically charge around $130+ per year.

Most premium LLC formation services also allow new customers to access their services for free throughout the first year.

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Alternatively, you can find some of the top recommendations for professional RA services in our Best Registered Agent Services of 2024 article.

Naming Your Michigan LLC ($0-$50)

When forming your Michigan LLC, you’ll be required to pick a suitable name that’s available to use.

While registering a name in itself has no cost, there are two potential costs to be aware of when naming your LLC.

Reserving Name

If you’re not looking to form an LLC right now, but have found an available name for your business that you like the sound of, you can file an Application for Reservation of Name with the Corporations Division in order to keep it safe for later.

This costs $25 and safeguards your desired name for up to six months. After this expires, you’ll need to decide whether to renew this reservation (and pay another $25 filing fee) or proceed to register your LLC.

Note: You can confirm if the name you want to reserve is available by completing a Search for a Business Entity on the Department of Licensing and Regulatory Affairs (LARA) website.

When choosing a name for your LLC, it’s important to select one that corresponds to an available domain. This is because a matching domain ensures consistency between your LLC’s name and its online presence, which helps to strengthen its brand recognition and credibility.

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Doing Business As (DBA) Name

If you want to operate your Michigan business under a name other than the one it’s legally registered as, you’ll need to obtain a Doing Business As (DBA) name — also known as an Assumed Name in Michigan.

To obtain a DBA name for your LLC, you can file online or fill out and submit a Certificate of Assumed Name to the Corporations Division. It will cost $25 to file this request, regardless of whether you submit it online or by mail.

Note: Assumed names will remain valid until December 31 of the fifth full calendar year after registration.

Michigan LLC Operating Agreement ($0+)

While not mandatory, it’s good practice for Michigan LLCs to have an operating agreement (or “company agreement” as it’s known in Michigan).

This document defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.

While you can opt to hire an online service or business attorney to draft this document for you (which typically costs at least a few hundred dollars), it’s actually quite straightforward to do it yourself at no extra cost.

It’s also important to note that this doesn’t actually need to be filed with the Michigan Secretary of State — it’s purely an internal document.

Additional Michigan LLC Formation Costs

On top of the more common fees outlined above, there are a number of potential additional formation costs that LLCs in Michigan may encounter depending on their circumstances.

We’ve summarized some of these additional costs below:

Expedited Michigan LLC Filing

The Office of the Michigan Secretary of State may take up to 10 business days in order to process standard filings.

However, you can request for your LLC’s Articles of Organization to be processed more quickly than this by paying for one of the following expedited handling services:

  • 24 hours: $50
  • Same-day: $100
  • Two hour: $500
  • One hour: $1,000

Note: These fees are the same for both domestic and foreign entities.

Local Business Licenses

In order to comply with the local-level regulations of your city and county, your business may be required to obtain some local business licenses. While very few municipalities impose a general licensing requirement for businesses operating within their limits, your LLC might need a municipal license if it’s involved in certain activities.

For example, the city of Detroit requires LLCs engaged in a number of different activities to obtain a local license, including moving furniture, rink skating, and snow removal.

In general, the cost of these local business licenses typically varies between $50 and several hundred dollars depending on the location, though you’ll need to contact your local county clerk’s office for a specific figure.

Note: To find the contact details of the relevant body in your county, refer to the Michigan State Association of County Clerks.

Certificate of Good Standing

A Michigan Certificate of Good Standing is a document often required to open a business bank account, or by lenders in order to check that your LLC is properly registered and legally authorized to conduct business with the state.

It costs $10 to request this certificate online by completing an Order Request Form or by mail using Form CSCL/CD-274. However, if you decide to order in person, this will cost $12.50 instead.

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Cost to Maintain an LLC in Michigan

In addition to the cost of forming an LLC in Michigan, there are also several ongoing costs you’ll be responsible for paying each year.

We’ve outlined these recurring costs associated with maintaining a Michigan LLC below.

Annual Statement

In order to remain in good standing with the state, all LLCs based in Michigan are required to file an annual statement with the Michigan Corporations Division by February 15th each year.

This costs $25 and can be either submitted through the LARA Corporations Division Online Filings System or by mail using the pre-filled annual statement you’ll be sent in the 90 days leading up to the deadline.

Note: Your first annual report will be due by February 15th immediately following your LLC’s formation, unless it was formed after September 30th.

Registered Agent Maintenance

If you decide to take advantage of a professional registered agent in order to handle your legal documents, you’ll be required to pay an annual fee in return for their services. This fee commonly ranges between $35 and $300 depending on the provider and features you select.

While you’re not required to use a professional registered agent service, it’s highly recommended for most small business owners.


In addition to the federal tax obligations your LLC owes to the Internal Revenue Service (IRS), there are a variety of state-specific taxes in Michigan you need to be aware of, including:

  • Sales tax
  • Employment taxes
  • Business privilege taxes
  • Property taxes

Additionally, there are various local taxes your LLC may need to pay depending on the municipality or county it’s based in, such as:

  • Sales and use taxes
  • Property tax

Michigan vs Other States

Michigan is a highly popular state among business owners due to its low costs overall. All that’s needed to launch an LLC in this state is a minimum of $50, and paying for the Michigan LLC annual statement costs which are only $25 a year.

To put this into context, it would be possible to start an LLC and keep it in good standing for five years in Michigan for the same price as launching an LLC in Delaware — which typically ranges between $90 and $200. This doesn’t even include Delaware’s ongoing costs, which at $300 a year only widen this gap.

Ultimately, however, the best state to form your LLC will be one in which you plan to primarily operate your business from. This makes it far easier to stay legally compliant on a number of levels, including taxation, licensing, and filing requirements, as you’ll only need to deal with one state’s set of rules.

LLC Cost in Michigan FAQ

What is needed to start an LLC in Michigan?

To start an LLC in Michigan, you’ll need to choose a name that complies with state regulations, appoint a registered agent, file Articles of Organization, and potentially obtain some form of business insurance (e.g., professional liability insurance) to further protect your personal assets. For a more detailed look into these steps, check out our guide on How to Start an LLC in Michigan.

How long does it take to get an LLC in Michigan?

The time it takes to get an LLC in Michigan can vary. Typically, it takes around 1 to 2 weeks for the state to process your Articles of Organization. However, factors like the current workload of the filing office and whether you’re willing to pay for expedited filing can influence this estimation.

How much does it cost for a business license in Michigan?

The cost for a business license in Michigan depends on various factors, such as the type of business, location, and any specific regulations that apply. However, in general, these licenses range from $50 to several hundred dollars in price. For more information, see our article on How Much Does it Cost to Start an LLC.

Does an LLC have to file an annual report in Michigan?

Yes, LLCs in Michigan are required to file an annual report with the Michigan Department of Licensing and Regulatory Affairs. The report is due by February 15th each year, and the filing fee is $25. Failure to file the annual report on time can result in late fees and other penalties. For a more in-depth look at the total LLC cost, Michigan business owners are recommended to see our How Much Does an LLC Cost in Michigan guide.

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