🚗How to Start an LLC in Michigan (Step-by-Step for 2025)
Learn how to start an LLC in Michigan in 2025. Step-by-step guidance on filing Articles of Organization, choosing a registered agent, EIN, and more.
🤔 Why Form a Michigan LLC?
A Michigan LLC combines the liability protection of a corporation with the simplicity of a sole proprietorship. Whether you’re a startup in Detroit or a small business in Grand Rapids, forming an LLC in Michigan is a strategic choice for entrepreneurs in 2025.
| Benefit | Description |
|---|---|
| 💼 Limited Liability | Separates your personal assets from business debts and lawsuits. |
| 📈 Pass-through Taxation | LLC profits are only taxed once at the individual level. |
| 🌟 Flexible Structure | Great for single-member or multi-member businesses. |
| 💳 Affordable Fees | Low formation and maintenance costs compared to other states. |
| 📅 Easy Compliance | Straightforward annual report and tax requirements. |
| 📄 Simple Filing | Fast online application via LARA. |
🧭 Step-by-Step Guide to Starting a Michigan LLC
1. 🏷️ Choose a Name for Your Michigan LLC
Your LLC name must:
Must include “Limited Liability Company” or “LLC”
Name must be distinguishable from others registered in Michigan
Check availability via the LARA Business Entity Search
Optional: Reserve your name for 6 months for $25.
2. 🧑💼 Appoint a Michigan Registered Agent
A Michigan registered agent is required to receive legal documents on behalf of your LLC.
Who can be a registered agent?
Any Michigan resident
A business entity authorized to operate in Michigan
Must have a physical street address (no PO boxes)
3. 📝 File Articles of Organization
file Articles of Organization (Form 700) with the Michigan Department of Licensing and Regulatory Affairs (LARA).
Filing Fee: $50
File Online: LARA Corporations Division
Processing Time: Typically 1–2 business days online
4. 📃 Create an Operating Agreement
A Michigan LLC operating agreement is not legally required but is strongly recommended.
It defines:
Ownership percentages
Member roles and responsibilities
Voting rights and profit distribution
Even single-member LLCs benefit from having one.
we offer free templates for both member-managed and manager-managed LLCs.
5. 🆔 Obtain an EIN from the IRS
An Employer Identification Number (EIN) is necessary for:
Opening a business bank account
Hiring employees
Filing federal and state taxes
🆓 Apply online at IRS.gov.
6. 🛠️ Acquire Necessary Business Licenses
While Michigan does not require a general business license, you may need:
Local business permits (city or county)
Sales tax license (from the Michigan Department of Treasury)
Professional licenses depending on your industry
7. 💼 Open a Business Bank Account
Keep personal and business finances separate. You’ll need:
EIN
Certificate of Formation
Operating Agreement
8. 📆 File Annual Statement
Michigan requires an Annual Statement (Form CSCL/CD-2700) for every LLC.
Due Date: February 15 each year (except the year of formation)
Filing Fee: $25
File Online: Michigan LARA Corporations Online Filing System
🔍 People Also Ask
How much does it cost to start an LLC in Michigan?
$50 for the Articles of Organization plus $25 annually for the report.
How long does it take to form an LLC in Michigan?
Online filings are processed within 24 hours. Mail filings can take 3–5 business days.
💰 Michigan LLC Costs (2025)
| Document/Service | Cost |
|---|---|
| Articles of Organization | $50 (online) |
| Registered Agent (annual) | $50–$150 |
| EIN | Free |
| Operating Agreement | Free (DIY) |
| Business Licenses | Varies |
| Annual Report | $25/year |
🏛️ Michigan LARA Contact Info
Agency: Michigan Department of Licensing and Regulatory Affairs (LARA)
Phone: (517) 241-6470
Email: corpsmail@michigan.gov
Address: 2407 N. Grand River Ave., Lansing, MI 48906
Website: https://www.michigan.gov/lara
❓ FAQs - Michigan LLC
1. Do I need a registered agent in Michigan?
Yes, every Michigan LLC must have a registered agent with a physical address in the state.
2. Is an operating agreement required?
No, but it is strongly advised for legal and operational clarity.
3. When is the annual statement due?
February 15th each year (not due in the year you form your LLC).
4. Can I be my own registered agent in Michigan?
Yes, if you are a Michigan resident with a physical address.
5. What’s the Michigan LLC tax structure?
By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs as partnerships, but you can elect corporate taxation.
6. Does Michigan require a business license?
Not statewide, but local permits and professional licenses may be needed.
7. How do I reserve an LLC name in Michigan?
You can file an Application for Reservation of Name for $25 to reserve a name for 6 months.
8. Do I need a business bank account for my Michigan LLC?
Yes, it’s recommended to separate business and personal finances.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
