How to Start an LLC in Michigan

A Michigan LLC is one of the most simple, cost-effective, and quick business structures to form. Even so, navigating the formation process can seem daunting without clear guidance and an actionable plan.

In this How to Start an LLC in Michigan guide, we’ll break down everything you need to know to form your LLC, from the steps you’ll need to take to get started to maintaining your business structure.

LLC in Michigan

In order to form an LLC in Michigan, you’ll need to complete the following steps:

1. Name Your Michigan LLC
2. Pick a Michigan Resident Agent
3. Submit the Articles of Organization
4. Create a Michigan LLC Operating Agreement
5. Get an EIN
6. File Your BOI Report

In the sections below, we’ve broken down each of these steps in more detail.

Step 1: Name Your Michigan LLC

The first thing you’ll need to do before getting started is picking the right name for your LLC. This is important because your business’s name will need to represent your brand accurately, as well as be as memorable as possible.

In Michigan, all LLC names need to abide by the following statutory guidelines in order to be accepted by the Secretary of State:

• Must contain either the term “limited liability company”, or an abbreviation such as “L.L.C.” or “L.C.” (with or without punctuation)
• Low-profit limited liability companies must include this term, or any accepted abbreviation (e.g., “L.3.C.” or “l.3.c.”)
• Must not contain any words, terms, or abbreviations that imply your LLC is organized for any purpose other than the one included in its formation documents
• Cannot include the word the term “corporation”, “incorporated”, or any abbreviation of them
• Must be sufficiently distinguishable from the names of all domestic and foreign LLCs, limited partnerships (LPs) corporations, and any names that have been registered or reserved in the Michigan Secretary of State’s records
• Cannot include any words or phrases (or abbreviations of these) that are prohibited by Michigan law

You can find a more in-depth breakdown of all these requirements for LLC names in Michigan Compiled Laws Section 450.4204.

Keep in mind that even though picking an LLC name in itself has no cost, there are certain fees that can be associated with the overall process.

Reserve an LLC Name

If you’re not yet ready to launch your business and still need a little more time, you can choose to reserve your desired LLC name for later by submitting an Application for Reservation of Name with the Corporations Division ($25 fee). This will keep anyone from being able to take the name you plan to use for six months.

If you need any longer than this, you’ll be able to renew this name reservation for another period of 120 days once it’s expired, but will need to pay the $25 fee again.

Note: You’re encouraged to check that the name you want for your LLC is actually available before reserving it, which can be done by quickly completing a Business Entity Search on the Department of Licensing and Regulatory Affairs (LARA) website.

Register an Assumed Name

Another potential cost associated with naming your LLC is obtaining an assumed name.

This name, which is also sometimes known as a “doing business as” (or DBA) name, is essentially a nickname that you can choose to register for your business to operate under — particularly if you’re not content with your LLC’s legal name.

Registering an assumed name can be done online or by filing a Certificate of Assumed Name with the Secretary of State and paying a $25 fee.

Note: In Michigan, assumed names will remain valid until December 31st, five years after the date they were initially registered.

Buy a Domain Name

Finally, you’ll want to focus on securing a good domain name (which is your website’s URL address) for your business. For this, try to focus on choosing one that’s easy for customers to remember, relevant to your business, and accurately reflects your brand.

After confirming the domain name you want to use is actually available, you can purchase it through a trusted registrar.

Step 2: Pick a Resident Agent

The next step you’ll need to take toward forming your LLC is to pick a resident agent — this is also sometimes referred to as a “registered agent” in some other states.

This is an individual or business entity that accepts legal correspondence on behalf of your business, such as service of process, notice of lawsuits, and official government communications; you’re required to continuously maintain one as long as your LLC is active.

Your resident agent can be an individual or business entity, but will need to satisfy the following requirements:

• Have a physical address located within the state of Michigan
• If an individual, must be at least 18 years of age
• If an entity, must be authorized to do business in Michigan

After appointing a resident agent, your Michigan LLC will be required to include their name and address in your annual statement by February 15 each year, according to Section 450.4207 of the Michigan Limited Liability Company Act.

Keep in mind that you can act as your own resident agent if you’re looking to save money — though we don’t typically recommend this as you’re much more likely to suffer fines and penalties due to non-compliance than if you just seek the help of a licensed professional.

On top of this, you’ll lose any anonymity your LLC would have given you since your name, address, and contact information will be publicly available.

Note: To have a look at some of our other top recommendations, you can also check out our Best Registered Agent Service of 2024 guide.

Step 3: Submit Your Articles of Organization

In Michigan, the Articles of Organization is the filing document that you’ll likely need to submit with the Corporations Division in order to officially register your LLC (this is also referred to as the Certificate of Formation in some other states).

To fill out your Articles of Organization, make sure you have the following details ready:

• The legal name of your business
• The reasons for creating it
• How long your LLC will last (if it’s not indefinite)
• The name and mailing address of your LLC’s registered agent

Below, we’ll walk you through the main ways in which you can submit your formation document for your LLC with the Michigan Corporations Division.

Online Filings

We tend to recommend filing your LLC’s Articles of Organization online by submitting Form 700 through the LARA Corporations Online Filing System.

Mail Filings

If you prefer, you can also submit your Articles of Organization by mail, along with a check/money order for the $50 filing fee, to the following address:

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

Your Articles or Organization will be sent back to your resident agent’s address (or the address at the start of the form, if you included one) once the Michigan Corporations, Securities & Commercial Licensing Bureau has added a copy of it to their records.

Note: Because this document will be stored electronically, it must be clear and readable. Filings without good black and white contrast, or that are otherwise unreadable, will not be accepted.

Step 4: Create a Michigan LLC Operating Agreement

Once this is completed, the next step you’ll need to take is to create an operating agreement.

This is an internal document that clearly outlines the ownership and management structure of your company in order to reduce potential future conflict.

While this document isn’t legally mandated in Michigan, all LLCs are recommended to have one as it can help maintain both: smooth operations and your LLC’s corporate veil.

A number of companies provide drafting services for operating agreements online, typically for a fee of around a few hundred dollars. However, it’s quite easy to sort this out by yourself if you want to save money, and you can even find a number of free templates online to help with this.

Step 5: Get an EIN

Even though it’s not a legal requirement (unless your LLC has employees or multiple members), all Michigan LLCs should apply for an Employer Identification Number (EIN).

This is a free, nine-digit number used by the IRS to identify your business and keep track of its tax reporting — much like a Social Security Number (SSN) for individuals.

You’ll need an EIN to be able to:

• Hire employees
• Open a business bank account
• Apply for some business licenses/permits
• Establish a line of credit

On top of this, using an EIN instead of a Social Security Number (SSN) helps to protect your personal information and safeguard your anonymity as the business owner of your LLC.

You can quickly apply for an EIN for your LLC online through the IRS website. You’re also able to submit a paper application using Form SS-4 either via fax to (855) 641-6935, or by mailing it to the following address:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Note: Don’t worry if you don’t already have an SSN, it’s not necessary to have one in order to apply for an EIN — instead, you can just leave Section 7b of the application blank and call the IRS on 267) 941-1099.

Step 6: File a BOI Report

Starting January 2024, the vast majority of LLC owners will be required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).

This is part of an initiative by the U.S. government to stop individuals and entities engaging in illegal or unethical activities from being able to conceal this using “opaque ownership structures”, like shell companies, to hide their true identities.

Existing LLCs will be able to file this report anytime between January 1, 2024, and January 1, 2025, while new LLCs will have up to 90 days after the date they were initially formed to do so (30 days for LLCs formed after the start of 2025).

Keep in mind that failure to file your LLC’s BOI report on time can result in exorbitantly high fines (i.e., $591 per day) or even jail time (up to two years).

Note: Not every LLC owner is required to file a BOI report. For example, companies with more than 20 full-time employees, accounting firms, and banks are exempt. For a full list of filing exemptions, you can have a look at FinCEN’s website.

How to Maintain Your Michigan LLC

In order to keep operating legally in the state of Michigan, you’ll be required to file an annual statement with the Department of Licensing and Regulatory Affairs.

Don’t worry if you’re not sure how to complete this step, as we’ve detailed all the information you’ll need to know in the sections below.

File an Annual Statement

For your Michigan LLC to remain in good standing within the state, it will need to submit an annual statement with the Michigan Corporations Division by February 15 each year.

The annual statement is a document that helps to keep the state’s records up-to-date regarding key pieces of information on your business entity up-to-date, such as your LLC’s registered agent, principal office address, and the names and addresses of its members or managers.

This can be filed online through the LARA Corporations Division Online Filings System or by mailing the pre-filled annual statement you’ll receive within 90 days before the deadline.

Regardless of how you choose to file it, you’ll need to accompany your annual statement submission with a $25 filing fee.

Note: It’s worth being aware that any LLCs formed after September 30 won’t need to file an annual statement by the due date that immediately follows their formation.

Michigan vs Other States

When deciding where to form an LLC, Michigan presents a compelling option for several reasons.

One of the main advantages of this state is its relatively low cost. The initial filing fee of only $50 is incredibly low — particularly when compared to the prices in similarly popular states such as Texas ($300) and Florida ($100).

Another benefit of forming an LLC in Michigan is the streamlined filing process that’s offered thanks to the Corporations Division’s user-friendly online filing system LARA. This makes it very quick and easy to form an LLC and begin benefitting from its limited liability protection — which saves business owners both valuable time and effort.

Regardless, keep in mind that the best state to form your LLC is almost always the state that you will be operating in; this is because otherwise you’ll likely be required to register as a foreign LLC in your home state, meaning that you’ll need to pay registration and maintenance fees twice.

Michigan Department of Licensing and Regulatory Affairs

Mailing Address:
Corporations, Securities & Commercial Licensing Bureau
P.O. Box 30054
Lansing, MI 48909

Physical Address:
2501 Woodlake Cir.
Okemos, MI 48864
Monday – Friday, 8 a.m. – 5 p.m.

Contact Information:

Email: CorpsMail@michigan.gov
Phone: (517) 241-6470