How to Determine Michigan LLC Costs
- How much is an LLC in Michigan?
- Michigan LLC Cost: How do I get started?
- What fees go into the total LLC cost in Michigan?
- What other Michigan LLC fees should I look out for?
- Are there penalties for paying my fees late in Michigan?
- What happens if I can't pay my filing fee to the Michigan government?
- Who receives the filing fees for forming my Michigan business?
- What is the largest fee I will pay when I form my Michigan LLC?
- What payment methods can I use to pay my LLC or corporation filing fees to the Michigan government?
- How do I form my LLC in Michigan?
How much is an LLC in Michigan?💲
The cost to start an LLC in Michigan is $75.
Michigan LLC Cost: How do I get started?🚀
Your first Michigan LLC cost comes from filing your Articles of Organization. You will need to file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). You’ll also need to select a name for your Michigan LLC and file an Application for Reservation of Name. This will ensure your business’s chosen name is yours and yours alone.
Our Michigan LLC Formation Service can help you get your Michigan business entity formed fast. We can help you file your LLC documents in Michigan for just $49.
What fees go into the final LLC cost in Michigan?💰
The following are fees you could see when you start your own LLC in Michigan:
Michigan LLC Filing Fee
$75: Filing your Michigan Articles of Organization costs $50. Filing your Application for Reservation of Name costs $25. This is the baseline Michigan LLC filing fee. If you need your documents processed within hours, your filing fees can be hundreds or even thousands of dollars. Planning ahead saves money.
Annual Filing Fee
$25 to $75: Once your LLC is up and running, you’ll have to submit your LLC’s Annual Statement to LARA by February 15th of each year. This filing costs $25 annually for Michigan LLCs, and $75 for a Professional Limited Liability Company’s Annual Statement and Annual Report.
Save yourself a headache and money by using our Annual Report Service to help you stay on top of your LLC’s annual reporting obligations.
Resident Agent Fee
Free: This is one Michigan LLC cost that everyone can agree won’t break the budget. Michigan is one state that allows you to act as your own Resident Agent. However, being your own agent means that you will need to be available during business hours to accept legal papers and communicate with the government for business purposes. While “free” sounds good on paper, many businesses prefer to hire a Resident Agent who can be available during business hours without taking you away from your work.
Finding a Resident Agent that meets all of your business needs as well as Michigan’s legal requirements can be a challenge. We can help you find the right Resident Agent at the right price for your LLC with our Michigan Resident Agent Service.
What other Michigan LLC fees should I look out for?🔍
Paying for your paperwork is only the beginning when you’re running your own business. There are other Michigan LLC costs that you don’t want to be surprised by.
Certificate of Good Standing
To open business bank accounts, get financing, and attract investors, you will need to obtain a copy of your Certificate of Good Standing. Uncertified copies of your Certificate of Good Standing are free through a Business Entity Search. However, if you need a certified, official copy, LARA charges $10 for each certificate if ordered online, by mail, or over the phone. In-person orders are $12. We can help with our Michigan Certificate of Good Standing Service.
DBA Name in Michigan
A “doing business as” or DBA is a name your business uses that is different from your name or the business’s registered name. In Michigan, this is known as an Assumed Business Name.
There is a one-time fee for filing a single Certificate of Assumed Name. Your business can have more than one Assumed Business Name. However, you’ll need to pay the fee each time you assume a new name for a new office or product. Each new filing comes with a one-time fee of $25.
A foreign LLC is simply an LLC originally formed in another state that is doing business in Michigan. To operate your out-of-state LLC in Michigan, you need to file an Application for Certificate of Authority to Transact Business in Michigan with LARA. The foreign LLC cost in Michigan is $50.
Your Michigan LLC cost can rise with the cost of permits and licensing. You might have to pay fees for:
- Business licenses
- Federal, state, and local permits
- Professional registrations
With our partners at Avalara, we can give you a Business License Report. Your customized report will break down what licenses, permits, and registrations your business needs. This can help you manage the cost to start a business in Michigan.
For just $49, we can form your Michigan LLC for you in just minutes. No LegalZoom promo code required: Pay just $49 plus filing fees for fast LLC formation in Michigan.
Are there penalties for paying my fees late in Michigan?📆
Yes. Failure to pay your fees on time can mean penalties, late fees, and even legal sanctions. Late fees can jeopardize the legal protections that the LLC structure offers to your business.
What happens if I can’t pay my filing fee to the Michigan government?🚩
If you are not able to obtain financial assistance or a waiver, then the government can refuse to accept your filing. Simply put, if you cannot pay your filing fee, your Michigan LLC is not official. You would then have the choice of selecting a business entity like a sole proprietorship or general partnership that carries more personal liability. While it is true that the average cost to start a business in Michigan is pricier if you are using an LLC, the LLC format comes with much greater personal protection from liability and can save money in the long run.
Who receives the filing fees for forming my Michigan business?💸
You pay your Articles of Organization fees to LARA’s Corporations, Securities, and Commercial Licensing Bureau.
What is the largest fee I will pay when I form my Michigan LLC?📈
When it comes to the cost to start a business in Michigan, your single largest LLC fee is your Articles of Organization filing fee, which is $50. You may pay higher fees if you need your filings expedited or you have to pay late fees and penalties.
What payment methods can I use to pay my LLC filing fees to the Michigan government?💳
Your Michigan LLC cost can be paid using a check, money order, or credit card. Cash is no longer accepted. If you pay by credit card, you might be charged an additional convenience fee from the state’s credit card processing company.
How do I form my LLC in Michigan?📋
Name your LLC📛
The first step in creating a business is giving it a good name. Michigan allows you a lot of freedom in naming your LLC. However, your new company’s name must:
- Contain the words or abbreviations “limited liability company,” “L.C.,” or “LLC” (periods or other punctuation are acceptable)
- Be different from other names on file with LARA
- Not use words like corporation or “Inc.” to suggest a non-LLC purpose or form
Once you pick your name, you need to file an Application for Reservation of Name form with LARA. Our Business Name Checker and Business Name Reservation Service can help free you to do the fun part of name selection without all the difficult paperwork.
Select a Resident Agent✋
Resident Agents are responsible for receiving important legal papers on behalf of your company. They need a physical address and presence in Michigan. Furthermore, they need to be available during regular business hours to communicate with government personnel and receive important notices for your LLC.
Michigan allows you to be your own Resident Agent, but many LLCs find that the money saved doing that wastes precious time they could spend building their businesses. A professional Resident Agent can help you stay fully compliant with Michigan law.
File your LLC’s Articles of Organization ✉
You can file your Articles of Organization with LARA online or by mail. Filing online is preferred (registration required). If you file by mail, you may only pay by check or money order. Mail your Articles of Organization and filing fee to:
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
P.O. Box 30054
Lansing, MI 48909
Create an Operating Agreement📃
An Operating Agreement is like a roadmap for your Michigan LLC to follow to set expectations and run your business. An Operating Agreement can:
- Provide rules and guidance for dispute resolution
- Customize how profits and losses will be shared
- Shape members’ expectations for running the business
Without an Operating Agreement in place, your LLC needs to run by Michigan’s laws and rules governing LLCs. These rules aren’t always customized to your individual business needs like an operating agreement is.
Our Operating Agreement Template makes writing your Operating Agreement easy. We provide the template, and you provide the knowledge of your unique business circumstances. We’ve helped hundreds of LLCs get up and running with custom Operating Agreements that they’ve crafted from our template.
Get an EIN 🔢
Employer Identification Numbers (EINs) come from the IRS and are necessary for certain businesses to pay their federal taxes. They are necessary if you have employees and for other reasons like getting a business bank account and certain types of insurance. Even if your business isn’t required to have an EIN, they can be great for protecting your personal privacy. If you don’t have an EIN, you’ll be required to use your personal social security number on business documents. In certain circumstances, your SSN can easily become public.
To get an EIN, you have to file paperwork with the IRS. We can handle this for you with our Employer ID Number Service.
Stay Legally Compliant👍
Business compliance is key to smart growth. If details about your business change, you’ll need to amend your Articles of Organization or file other updated paperwork with the government. This can add additional Michigan LLC costs and hassle. To help prevent more paperwork and more headaches, you can use our Worry-Free Compliance Service to file up to two amendments per year and keep track of your business’s other compliance requirements.
We can help!💪
Taking the leap into being a business owner is one of the scariest, most rewarding adventures you can undertake. We’ve done it, and we understand. We can help you get your LLC up and running quickly and stay compliant with our large catalog of business formation services. We can help you operate efficiently so you save money while growing your business.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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