How Much Does it Cost to Form an LLC in Michigan?

Summary of Michigan LLC Costs

Here is a list of the LLC costs you can anticipate in Michigan. Please note these are accurate as of 2026 and are subject to change.

Item	Reason	Cost
LLC Filing Fee	Used to establish the LLC	$50.00
Certificate of Authority (foreign LLCs only)	Must be used to obtain a Certificate of Authority to Transact Business in Michigan.	$50.00
Business Licenses	Michigan has no general state business license. Sellers need a free sales tax license, and some cities, such as Detroit, require local business licenses.	Varies
Resident Agent (Required)	Every Michigan LLC must have a resident agent (Michigan’s term for a registered agent). You can be your own agent or hire a service.	$50–$300 per year for a service
Reserving a Business Name (Optional)	If you are not quite ready to set up your LLC, you may wish to reserve your business name so it remains available to you.	$25.00 to reserve for six months
Filing for a DBA (Optional)	This is an option for those who wish to make their business name more closely reflect the industry or service they are operating in. LLCs file a Certificate of Assumed Name (CSCL/CD-541) with LARA, valid until December 31 of the fifth full calendar year after filing.	$25.00
Operating Agreement (Optional)	While having an operating agreement is optional, it is typically a good idea	$0–$1,000
Annual Report	This annual statement is required every year by February 15	$25 (professional LLCs: $75)
Certificate of Restoration of Good Standing (If Needed)	Only needed if your LLC loses good standing after missing 2 years of annual statements	$50 plus $25 per missed statement

LLCs file assumed names with LARA, not the county clerk. County clerks handle assumed names for sole proprietors and partnerships. A complete list of the clerks may be found on the Michigan Association of County Clerks website.

The formation of an LLC can feel confusing and expensive. However, it does not have to be either of these things. You can start an LLC in Michigan quickly if you understand what documents you need ahead of time, or you can hire an LLC formation service. Each state has different requirements for LLCs and charges different fees. In this section, we will explore the costs associated with an LLC in Michigan.

General Steps and Costs When Forming a Michigan LLC

When establishing a Michigan LLC, it is important to understand what steps must be taken and what documents are required. This is to ensure your business meets all legal requirements to do business within the state. 

Naming your Michigan LLC

Before you establish your LLC, you will want to review the existing list of business names in Michigan. Keep in mind that you can select your LLC’s name up to six months in advance. While the Michigan entity search is free, you have the option of reserving your business name. To reserve the name, you would file the appropriate application along with a $25 fee to reserve your business name for six months.

The LLC owners may also consider using a fictitious name in Michigan to more clearly state how they wish to be identified. An assumed name, or DBA (Doing Business As) application, called a Certificate of Assumed Name, can be filed with LARA and a fee of $25 paid to the State of Michigan.

Filing articles of organization

When establishing an LLC, articles of organization must be filed with the state. The application is filed with Licensing and Regulatory Affairs (LARA), and the $50 fee can be paid in person, by mail, or online.

Filing the articles of organization will involve gathering the following information:

• Name of LLC
• Resident agent and registered office street address
• Organizer’s name and signature
• Whether the LLC is manager-managed
• Duration (only if not perpetual)

The articles may be filed online through the MiBusiness Registry Portal or by mail.

Appointing a registered agent

You must name a Michigan resident agent with a street address in the state who is available during business hours to accept documents from the state, receive service, and sign for other legal matters. The LLC may opt to do this on its own, but for reasons including privacy and flexibility, many opt to hire a registered agent service, which typically costs $50–$300 per year. You name your resident agent in the Articles of Organization at no extra cost. To change it later, file a Certificate of Change of Registered Office and/or Resident Agent (CSCL/CD-520, $5).

Creating an operating agreement

Michigan does not require an LLC to have an operating agreement. However, there are some important reasons why a business may opt to create one, including:

• Written agreement between members of the LLC (owners)
• Helps establish rules and procedures for the business
• Provides details of daily operations
• Establishes responsibilities of each member
• Establishes processes for changing existing rules or implementing new rules for a business

LLC owners may opt to create their operating agreement on their own, hire an attorney to do it for them, or use a service that provides operating agreements. Costs will generally range from $0 if you do it yourself up to $1,000 if you hire an attorney to prepare an operating agreement on your behalf.

Other Annual and Additional Michigan LLC Costs

There are some additional annual fees which may be required when you are operating an LLC in Michigan, including:

Sales tax

Any business which sells products to a consumer is required to collect sales tax in Michigan. While the sales tax license is free, business owners must maintain accurate records and file returns on the schedule Treasury assigns (monthly, quarterly, or annually). A complete list of who must obtain a sales and use tax license is available on the State of Michigan website.

Business licenses and permits

The state does not require you to have a general Michigan business license. However, specific municipalities may require those operating in their municipality to have a license or various permits. Some of the most common local requirements are below; see Michigan license costs for industry-specific fees.

• Grand Rapids: Business licenses are required for home-based businesses, food vendors, and others. Fees vary; check with the city
• Detroit: Every business owner who has a facility is required to obtain a Certificate of Occupancy and a Business License before they open a business in Detroit. Fees vary; check with the city
• Sterling Heights: Requires everyone who does business within the city to be registered with the City Clerk. There is a filing fee to register a new business, and registrations may need to be renewed. The fees vary depending on the type of business you are operating; check with the city

Annual report

Every LLC is required to file a Michigan annual report (annual statement) with the state. LARA sends a reminder by email (or postcard) before the February 15 due date. Annual statements must be filed online through the MiBusiness Registry Portal; paper filings are no longer accepted. If your LLC misses 2 years of annual statements and loses good standing, restoring it costs $50 plus $25 for each missed statement.

What Expenses You Can Write Off

While these expenses may feel overwhelming when you are starting your business, it is important to remember that you will also get a tax break on your federal income taxes. The following expenses may be deducted from your federal taxes:

• Cost of completing articles of organization
• Filing fees
• DBA fees
• Operating agreement costs
• Registered agent costs
• Permitting and licensing fees
• Attorney fees
• Annual reporting fees

Conclusion

As stated, it’s important to understand all the mandatory and optional costs when starting an LLC in Michigan. This will allow you to better prepare your budget for setting up your business and working out a plan for the ongoing costs. We’re here to help you on every step of the way!

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