Starting a limited liability company (LLC) can be an exciting venture made even better with careful planning. You may wonder how to start a business in Michigan if you’ve never formed an LLC before. This guide will walk you through your next steps and help you outline your path to forming your small business. To understand how to create a Michigan LLC and grow your business in the Great Lakes State, follow this LLC formation guide.

Starting an LLC in Michigan involves filing your business, appointing a registered agent, and deciding on an operating agreement. But before you contemplate the bigger decisions and register, you’ll want to solidifying a name for your new business.

Michigan LLC Formation

Although some steps are more complex than others, this step-by-step guide will help simplify the process of forming an LLC in the state of Michigan. As you check off each step, you’ll learn how to start an LLC in Michigan, bringing your dreams closer to reality. We’ll also show you how our services can make the process easier.

Step 1: Name your Michigan LLC

You likely have an idea of your business name, but naming a business is more than a creative way to market your services; it also has to comply with state regulations. In this case, you’ll need to register your business under a- unique name within the state of Michigan. Check out our page on how to conduct a Michigan business search for your desired name to check availability.

Your best bet is to create a list of possible names before running a name search. It might be helpful to check a more detailed explanation of the requirements for naming your business in Michigan. Slight changes in spelling, punctuation, or choice of suffix will not be enough to distinguish your business to the state.

Limited Liability Company Name Requirements

To comply with Michigan’s state law, your company’s name must end with the proper designator. In this case, you have four options: including the entire phrase of “Limited Liability Company,” the abbreviation “LLC,” or a punctuated version of the previous as “L.L.C.” or “L.C.” Regardless of which option you choose, it must appear at the end of your company’s name.

Keep in mind that some words are prohibited. For instance, you can’t include the word “corporation.”

Reserve a Business Name for your Michigan LLC

Once you’ve landed on a name that meets your business goals and Michigan’s requirements, you can reserve it. To reserve the name, you’ll need to deliver an Application for Reservation of Name and a filing fee to the Department of Licensing and Regulatory Affairs. If the name you’ve chosen is approved, it will be put on hold for six months. This allots plenty of time for you to finish establishing your LLC. If you’d rather not deal with this process yourself, we have a business name reservation service that can handle it for you. As part of the service, we also check to see if your desired name is available.

When coming up with a business name, it’s wise to consider whether you can secure a matching domain name for your business’s website. We have a tool to help you do a preliminary domain name search. Additionally, our domain name registration service can help you secure the online name that will best serve your company.

File a DBA in Michigan

If the LLC owners want to do business using a name that is different from the original name used to form the business, they must also register the secondary name. Also known as a “Doing Business As” (DBA) name in Michigan, this secondary name doesn’t replace the original name, but it can serve as an additional, legal name for the business. Once you find one that is available, file a Certificate of Assumed Name or use our DBA service.

Finally, to make sure you’re in the clear, visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out more or apply for a state trademark, visit the Michigan Department of Licensing and Regulatory Affairs website.

Step 2: Appoint a Michigan resident agent

Continuing your journey to create an LLC in Michigan, with the registration process, Michigan requires that every LLC appoint a registered agent, known in Michigan as a resident agent. The person or entity you appoint will be the primary point of contact for legal matters. If your company is subpoenaed or sued, the papers will be delivered to your resident agent.

While the owner of the company can be the resident agent (if they reside in Michigan), this is not always the best option. Let’s face it, being served papers in front of customers is a sure way to deter business, and, with so many alternatives, it might be in your best interest to hire outside registered agent services.

Benefits of Hiring an Outside Registered Agent Service

Some other benefits of hiring an outside registered agent service like ours include:

• Flexible business hours: A registered agent service is always available during regular business hours, providing you more flexibility to work when you’re most productive.
• Ensure compliance: A registered agent service can help ensure your LLC is meeting the legal requirements for maintaining a resident agent at all times.
• A consistent address: Your registered office address will likely remain the same, which means you have more flexibility with your business location in case you have to move.

As long as they are a resident of the state of Michigan or a business entity authorized to do business in Michigan, and have a physical street address within the state, hiring an outside resident agent is an affordable way to save you possible troubles later on.

Step 3: File Michigan Articles of Organization

Once you’ve secured a name and resident agent, it’s time to certify your LLC in the state of Michigan. You’ll need to complete your Articles of Organization and file it with the Michigan Department of Licensing and Regulatory Affairs’ Corporations, Securities, and Commercial Licensing Bureau, Corporations Division.

Filing official government documents like this can be intimidating for many people, which is why we’re here. With business formation plans, our professionals handle the filing for you to make sure it’s done correctly the first time. But, although we can handle this for you, we’ll show you how the process works below.

Before you begin filling in the form, ensure you have all of the necessary information. 

Articles of Organization Requirements

You’ll need the following information to fill out the form accurately:

• The name of your LLC
• The purpose of its formation
• The duration of your company (if not perpetual)
• The name and address of your resident agent

Whether you mail the paperwork, go in person, or submit online, you must include a nonrefundable fee to file Articles of Organization. To have the service expedited, you can pay additional fees to have it completed in one hour, two hours, same-day, or 24-hours. Additionally, we can handle it for you with our faster filing speeds service.

Step 4: Create an operating agreement

Having an operating agreement in Michigan is not mandatory, but it can help you create governance for an LLC. An LLC operating agreement covers the rules your company will follow, lists LLC members, and the percentage ownership. It also discusses how finances will be handled, decisions will be made (including partner voting structure), and details necessary regulations.

Use Case for an LLC Operating Agreement

You may feel an operating agreement is unnecessary, especially since it’s not a requirement in the state of Michigan. However, operating agreements can outline what happens to your company in the event of your demise. It can also help protect you and your assets in case of dissolution or bankruptcy. If you’re starting an LLC with partners, each party will need to agree to the terms and sign the document.

Unsure how to start creating an operating agreement for your Michigan LLC? Use our customizable template to help get you started with your Michigan LLC forms.

Step 5: Apply for an EIN

To finalize your LLC, you’ll need a Federal Employer Identification Number (FEIN), also known as an EIN or tax ID. Unless you are a single-member LLC with no employees, this nine-digit number is required for tax purposes. This includes filing taxes, hiring new employees, and opening business bank accounts. An EIN is sometimes even required for single-member LLCs with no employees.

You can get your Michigan LLC’s EIN through the Internal Revenue Service (IRS) website, through mail, or fax. If you’d rather avoid dealing with that particular government agency, we can get it for you. Our FEIN service is quick and eliminates the hassle.

Open a Business Bank Account for your Michigan LLC

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time. It also helps you avoid commingling funds. Commingling funds can not only make taxes more troublesome, it could also be used against you if someone takes you to court to challenge whether you and your LLC are separate entities.

Fortunately, we have partnered with LendingClub to offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. To authorize others in your business to use the account, we offer a banking resolution template to make the process simple.

For further help managing your new business’s finances, check out the ZenBusiness Money App. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.