To start a Michigan LLC, you’ll pay $50 to file the LLC Articles of Organization.
This form gets filed with the Michigan Department of Licensing and Regulatory Affairs (LARA). And once it’s approved, your LLC officially goes into existence.
However, other steps exist to start a Limited Liability Company (LLC) in Michigan. For example, search your business name and hire a Registered Agent (aka Resident Agent).
We break down the Michigan LLC process step by step using the professional tips we’ve learned. We can help you form an LLC in Michigan right now. It’s easy to do.
A. Search your LLC Name
Before you file any paperwork for an LLC, you should ensure that the name you want for your business is available in the state. Our step-by-step Michigan LLC Name lesson shows you how to look up the name of your business in Michigan.
You can use the Business Entity Database to do this. You can look for your business name to see if it is already in use by a Michigan business. Doing this would help since two businesses in the same state can have different names.
Next, you’ll need to learn about the rules for naming children in Michigan.
Section 450.4204 of the Michigan LLC Act tells you what you need to know about how to name a Limited Liability Company.
LLC Designator: Michigan law says that your LLC’s name must end with a proper designator.
In Michigan, the following can be used to name an LLC:
*Limited Liability Company
Your LLC can’t have a name that sounds like it’s a different kind of legal organization. For example, your name can’t include the words or forms Corporation, Corp., Inc., Incorporated, Limited Partnership, LP, LP, or Trust.
B. Choose a registered agent in Michigan
Once you’ve chosen a name for your LLC, the next step is to choose an Michigan Registered Agent
An Michigan Registered Agent is either a person or a business.
That accepts legal mail (called “Service of Process”) and state letters on behalf of your Michigan LLC.
The name for this job in Michigan is “Resident Agent.” More often, though, the term “Registered Agent” is used. Both words mean the same thing.
You can choose from the following three people to be the Registered Agent:
* Service for your friend
* family member
* registered agent
Your LLC’s “Registered Agent” must live in Michigan and have a street address there. You can’t use a PO Box.
If you, a friend, or a family member will be your LLC’s Registered Agent, they should be okay with their name and address being in public records.
If you don’t have an address in Michigan or just want more privacy, you can hire a Registered Agent Service for your LLC.
C. File Michigan Articles of Organization
The Michigan Department of Licencing and Regulatory Affairs (LARA) is where you must file the Michigan LLC Articles of Organisation to start an LLC.
The cost to file is $50. This fee is paid only once when you set up your LLC.
Check out LLC Cost in Michigan to find out how much everything will cost.
Filing methods: The Articles of Organisation can be filed online or by mail.
We suggest filing online because it is easier to do and takes less time to get approved.
The Corporation Online Filing method is the name of the online method for filing.
You could also choose to send in your tax return by mail. Then you can download the Articles of Organisation (Form CSCL/CD-700) and send it with a cheque or money order to the Michigan Corporations Division.
Address for mail: Send your finished Articles of Organisation and a $50 filing fee to Michigan Department of Licencing and Regulatory Affairs
Michigan Department of Licensing and Regulatory Affairs
Michigan Corporations Division
PO Box 30054
Lansing, MI 48909
Time for LLC approval: A Michigan LLC is usually approved in ten business days. To see if there are any delays, please look at How long it takes to get an LLC in Michigan.
D. Make a business plan for your LLC.
The Michigan LLC Operating Agreement is a written contract that says who owns the LLC and how much each Member owns.
Operating Agreements can also spell out how taxes are paid, how gains are split, how the LLC is run, and what its business goal is.
Both Single-Member LLCs and Multi-Member LLCs should have an Operating Agreement, according to us.
LLC Operating Agreements can help you show that your Michigan LLC is being run correctly as a separate legal business entity in case you get sued.
You don’t have to send the Operating Agreement for your Michigan LLC to any state or federal office. It also doesn’t have to be signed by a notary. Just make sure that all Members have a copy of your LLC’s business records.
Your Operating Agreement can be changed as needed. You can make any changes you want as long as everyone agrees.
E. Get an EIN for your Michigan LLC
The next step is to have the IRS in Michigan give your LLC a Federal Employer Identification Number (EIN).
Your EIN Number is used to:
* Identify your LLC for tax reasons
* To open a bank account for your business.
And, if necessary, to:
* pay employees
* get a credit card or loan for the business
* Get licenses and permits for your business.
Don’t ask for an EIN until your LLC has been approved. If the state turns down your LLC, you’ll need to get a new EIN (and get rid of the old one).
It costs nothing to get a Federal Tax ID Number. Federal Tax ID Numbers are free to get from the Internal Revenue Service (IRS).
US Citizens and US Residents: If you already have an SSN or ITIN, you should apply for an EIN online. Here are directions with steps: You can get an EIN online.
Non-US Residents: You can still get an EIN for your LLC even if you don’t have an SSN or ITIN. There is no way to apply online. You have to apply by mail or fax instead. Here are directions with steps: How to get an EIN if you don’t have an SSN or an ITIN.
F. File your Michigan LLC’s yearly report.
All LLCs in Michigan must file a Michigan Annual Report or Annual Statement every year.
The fee for filing an Annual Statement is $25 per year, and it is due every year by February 15th.
File online: Go to the state’s online reporting page and log in with your CID (Customer ID Number) and PIN (Personal Identification Number). Then, make your $25 payment and fill out your LLC’s Annual Statement online. You can get your CID and PIN back if you can’t find them.
Report by mail: Each year, the state will send your Resident Agent an Annual Statement Form that has already been filled out. If anything has changed, you can make changes here. Then you need to sign the form and get a cheque or money order for $25 made out to the “State of Michigan.”
Send your Annual Statement and payment to
Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
PO Box 30057
Lansing, MI 48909
After your Limited Liability Company is set up,
After your Michigan LLC has been set up, there are a few more things to think about.
LLC bank account for business
For your LLC, you’ll need to open a business bank account. This makes it much easier to keep your business’s books and records.
Having a different business bank account lets you keep your business finances separate from your personal finances. This keeps your personal assets safe from business debts.
Credit card for a business
After you open a business bank account, the bank will give you a debit card. But you might also want to get a credit card for your business to get benefits. This is also helpful for keeping work costs and personal costs separate.