Start Your Michigan LLC: A Complete Step by Step Guide

Quick facts about forming a Michigan LLC

Item	Details
Filing Fee	$50 state fee (online or by mail); no other fees
Processing Time	Processing times vary. LARA posts its current processing date in the Business Entity Search, and expedited service is available (24-hour for $50 up to 1-hour for $1,000).
Annual Report Fee	$25 annual statement, due February 15 each year (filed online)
Registered/Resident Agent Required	Yes, they are called Resident Agents and must have a Registered Office in Michigan
State Franchise Tax	None for LLCs
Business License	No statewide license, but local or industry-specific permits may be required
Managing Authority	Michigan Department of Licensing and Regulatory Affairs (LARA)

How to start a Michigan LLC in 5 steps

Starting an LLC in Michigan or any other state can seem daunting, especially if you are diving to it head first for the first time. Our guide breaks down the process into simple and clear steps, so that you can feel like a pro even if you’re doing it for the first time.

Here Are the 5 Steps to Take to Start an LLC in Michigan:

1. Name your Michigan LLC
2. Choose a resident agent and registered office
3. File articles of organization
4. Create an operating agreement
5. Apply for an EIN

Below, you’ll find both a detailed explanation and a video to walk you through each step.

Step 1: Name your Michigan LLC

Before you file, ensure the name you want to use is available by performing a Michigan business entity search. The recommended ways to find out if another business uses the name are to call 517-241-6470 or use the LARA online search for a business entity.

Reserve a business name

The reservation of a name for an LLC is possible for 6 months following the month of filing the reservation form. This reservation is accomplished by filing a name reservation form (or reserving online through the MiBusiness Registry Portal) and paying $25. If you are ready to file the LLC immediately, there is no need to reserve the name; however, name reservations are first-come, first-served.

File a DBA or ‘assumed name’ (if opting for one)

A DBA (doing business as) lets your LLC operate under a name other than its legal name. For example, Alphabet Inc. is the parent company doing business as Google.

In Michigan, a DBA is called an “assumed name.” To apply for an assumed name for an LLC, use the form CSCL/CD-541 and pay the $25 fee. It’s filed with LARA and stays valid through December 31 of the fifth full year after filing, and you can renew it.

The name chosen for the assumed name cannot be so materially similar to another business name in the state that it causes confusion, so follow the state’s rules when choosing a business name.

Filing an assumed name can be useful in many cases, usually for branding purposes. If you’re not sure whether or not you need a DBA (or assumed name), learn more on what is a DBA, and how to file a DBA in Michigan.

Registering your name for trademark

Note that this step is also optional. You may want to protect your business name rights using a state or federal trademark. The filing fee for registering a trademark or a service mark, only for use in Michigan, is $50.

Suppose the business already has a registered trademark or service mark on file with the U.S. Patent and Trademark Office (USPTO). In that case, that filing extends the registration to all of the United States, including Michigan.

Step 2: Choose a resident agent

A registered agent for your Michigan LLC is a person or a corporation that serves as the address for all legal and formal inquiries. In Michigan, a registered agent is called a resident agent but operates the same way as registered agents in other states.

Your resident agent can be a Michigan resident (including you or another member) or a business entity authorized in Michigan, and its business office must be your registered office. A P.O. box can’t be used.

Most businesses prefer to use the services of an authorized resident agent for a small annual fee. Be sure the resident agent is in good standing in Michigan, which you can confirm with a Michigan LLC lookup. The LLC will authorize this resident agent to accept process service and mail for the company. The registered office address and the resident agent will be part of the public records in Michigan. 

Step 3: File articles of organization

Filing articles of organization is one of the very first steps of officially forming your Michigan LLC.  You can think of it as the birth certificate of your new LLC! 

The Articles of Organization form contains basic information about your LLC. Details like:

• The name of your LLC
• The purpose of the company
• Name of the resident agent and the street address of the registered office
• The name of the organizer of the LLC (that would be you!)
• Whether the LLC is managed by managers (if so)

State fees

Starting a new LLC in Michigan costs $50. There are no other state filing fees, and the $50 fee is waived for LLCs whose initial members are mostly veterans.

Forming a new professional LLC costs $50. Any additional licensing fee depends on the profession.

A foreign LLC transacting business in Michigan must obtain a Certificate of Authority for $50.

Requirements

Articles of organization

For a new LLC, the CSCL/CD-700 filing form contains only the minimum information required for the Articles of Organization, which may not meet the full needs of your new LLC.

You may want to file more comprehensive Articles of Organization instead. This filing is fine as long as it meets the minimum requirements.

For a professional LLC, which requires a professional license, use the form CSCL/CD-701 instead. This is only applicable if you practice a trade that requires a professional license, such as a medical doctor or a law practitioner.

Resident agent

As mentioned in step 2, you must have a resident agent and a registered office in Michigan. The resident agent is authorized to accept process service on behalf of the LLC at the registered office, which must be a street address in Michigan.

Entity name

The LLC name must contain “Limited Liability Company” or the abbreviation “L.L.C.” or “L.C.” (periods are optional, so “LLC” and “LC” also work).

How to file

An LLC is officially formed in Michigan by filing Articles of Organization (form CSCL/CD-700) with LARA’s Corporations Division and paying the $50 filing fee. File online through LARA’s MiBusiness Registry Portal (preferred; you’ll need a MiLogin for Business account), by mail, or in person at the Corporations Division bureau office.

Filing for LLC in Michigan

Filings may be done online, by mail, or in person. By mail, send filings to LARA Corporations Division, P.O. Box 30054, Lansing, MI 48909.

It is safer and more efficient to use the available online services than going to the office in person.

Expedited services are available by submitting the form CSCL/CD-272 and paying extra fees depending on how fast you need the filing done, which are:

• $1,000 for one-hour service
• $500 for a two-hour service
• $200 for same-day service for existing entities
• $100 for same-day service for new entities
• $100 for service within 24 hours for existing entities
• $50 for service within 24 hours for new entities

Here is contact information for the Department of Licensing and Regulatory Affairs (LARA) Corporations Division.

Corporations Division hours and office location

Monday to Friday, 8:00 a.m. to 5:00 p.m. (Eastern time)

• Cashier’s office (first floor), Monday to Friday, 8:00 a.m. to 4:00 p.m. (Eastern time)
• The Corporations, Securities & Commercial Licensing Bureau
• 2407 N. Grand River Ave.
• Lansing, MI 48906
• Email: [email protected]
• Tel.: 517-241-6470

Postal mailing address (for USPS delivery only):

• P.O. Box 30018
• Lansing, MI 48909

Step 4: Create an operating agreement

A written Operating Agreement defines how the business will run. It’s important to cover everything that might arise in the future that may cause a conflict, especially if you have a multi-member LLC.

Is an operating agreement a must?

Michigan doesn’t require an operating agreement, even for a single-member LLC, but we strongly recommend one. Under the Michigan LLC Act, an operating agreement is a written agreement among the members. You don’t file it with the state, but you must keep it with your company records at your registered office or principal place of business in Michigan. A written Michigan Operating Agreement is especially useful for an LLC with more than one owner: if questions come up about operations in the future, the owners can refer back to it. 

It’s also recommended for a single-member LLC to have an operating agreement. Since this document lays out the details of operation of your LLC, it’s a key element in keeping your liability protection intact, in case of any legal woes. An operating agreement is so essential, we consider it a must! 

The critical elements of an operating agreement are as follows:

• Business Purpose: This is the intended business purpose at inception and usually allows for any other lawful business purpose to cover any future changes and opportunities
• Term: This is the length of the LLC’s operating timeframe or in perpetuity if it continues forever
• Tax Treatment: This declaration is whether the LLC is a pass-through entity or if it will elect to be treated as a C-corporation by the Internal Revenue Service (IRS) for federal tax purposes
• Owners: Ownership is determined by being a member of the LLC and expressed in units. Each unit equals a certain percentage of the company
• Ownership Interests: The description of ownership interests in the Operating Agreement outlines how profits, assets, and losses are divided among the LLC’s members
• Members’ Investments: This is a list of the initial capital contributions invested by each member in the LLC
• Additional Capital Contributions: This is an optional provision that may require members to contribute additional capital
• Members’ Rights and Responsibilities: The Operating Agreement covers how the company makes business decisions, who has management responsibility and voting rights, and what happens if there is a dispute
• Members’ Duties and Compensation: If members have specific duties to perform for the LLC, this provision covers their duties and if they will receive any compensation for work done for the LLC
• Management Structure: If the managers are not all of the members of the LLC, then they are identified, and the management structure is described, including who has the authority to bind the LLC by contract
• Accounting and Auditing: This describes where the accounting records are and the right of each member to audit them during regular business hours at the member’s expense
• Adding New Members and Withdrawals: This section covers what happens when the LLC adds a new member or if one of the existing members withdraws
• Expulsion of a Member: This covers the reasons and process for the expulsion of a member. The reasons should be serious, such as fraud, criminal acts, and negligence that harms the LLC or its members
• Transfer of a Member’s Interests: This provision covers any rights that members have to transfer their ownership interest to another party and the right of first refusal of the existing members to buy the member’s interest instead of allowing the member to sell to a third party
• Dissolution: This section covers what may happen to cause the dissolution of the LLC
• Sudden Death Buy-Sell: This provision allows for the sale of a member’s ownership interest in the LLC to the remaining member(s) in the case of a member’s death or permanent legal incapacity, so the LLC continues to operate
• Non-Compete: This optional provision prevents a member from leaving the LLC and then directly competing with it for a particular time after leaving
• Meetings: This covers when and how meetings of the members will be held, what consists of a quorum required for voting, and the number of membership units that represents a majority ownership interest
• Disputes: This optional provision covers the use of arbitration and mediation as alternative dispute resolution compared to potentially more-costly litigation
• Law: This provision states that the LLC operates under Michigan laws

More details about creating an Operating Agreement for an LLC are in our separate, in-depth explanation of that topic.

State requirements

Suppose you do not have an Operating Agreement for your LLC. In that case, the business must run according to the default rules of the Michigan Limited Liability Company Act (MCL 450.4101 et seq.).

Step 5: Apply for an EIN

Most LLCs need an employer identification number (EIN) for tax records, payments, refunds, and filing tax returns, and it’s required if your LLC has employees or more than one member. There is no cost for an EIN, and it is very straightforward to apply for an EIN online. The IRS online EIN application is available Monday to Friday, 6 a.m. to 1 a.m.; Saturday, 6 a.m. to 9 p.m.; and Sunday, 6 p.m. to midnight (Eastern time).

We provide this service and will apply for an EIN for our clients, if they opt for it as part of our automated LLC formation process.

Next steps after opening your Michigan LLC

Comply with Michigan’s tax requirements

If your LLC is a pass-through entity, Michigan has no annual state LLC tax. However, if you elect to be a C-corporation for tax purposes with the IRS, the company will pay Michigan’s 6% corporate income tax.

After you get your federal EIN for a new business in Michigan, you must register with the Michigan Treasury Online (MTO) for business taxes.

How your LLC will be taxed

You will pay federal, state, and perhaps local taxes for your business operations. Learn more about LLC taxation here.

Federal income tax

The LLC can be either a C-corporation that pays federal taxes or a pass-through entity for federal tax purposes. If the owners of the LLC elect to be treated as a C-corporation for federal tax purposes, they file a Form 8832 Entity Classification Election with the IRS.

Treatment as a C-corporation means that the LLC pays federal income taxes on its net income.

One advantage of this entity classification is that qualified dividends paid by the LLC to its owners are taxed at capital gains rates, which are usually lower than a taxpayer’s individual tax rate.

The disadvantages are double taxation and the added expense of maintaining a C-corporation.

A pass-through entity is one in which members report their portion of the LLC’s net income on their personal federal income tax returns. However, a disadvantage is that LLC members have to report this income as self-employment income and pay federal taxes on it, including withholdings for Medicare and Social Security.

Federal self-Employment tax

If your LLC operates as a pass-through entity, you will pay self-employment taxes on the income from the LLC. The federal self-employment tax rate is 15.3% (12.4% Social Security and 2.9% Medicare).

For 2026, Social Security tax applies to the first $184,500 of net earnings; there are no further Social Security taxes on income above that amount.

State income tax

The LLC itself doesn’t pay Michigan income tax as a pass-through entity, but members pay Michigan’s flat 4.25% individual income tax on their share of profits. Some cities, including Detroit, also levy a city income tax.

The Michigan corporate income tax (CIT) rate is 6% of taxable income. This rate applies to all corporations transacting business in the state and any LLC that elects for taxation as a C-corporation. LLCs taxed as C-corporations with under $350,000 in Michigan gross receipts don’t need to file the CIT.

Small business alternative credit

Michigan has only one credit in the CIT, which is for any business entity that is a state taxpayer with gross receipts less than $20 million and with adjusted business income (minus the loss adjustment) that does not exceed $1.3 million each year adjusted for inflation.

There is a disqualification of the taxpayer if any officer or owner of the business receives more than $180,000 in annual compensation.

A qualifying business under the small business alternative credit pays only 1.8% of adjusted business income.

Sales tax

The Michigan sales tax rate is 6%, and Michigan has no local sales tax. Goods subject to sales taxes include furniture, appliances, vehicles, prepared food, and many other items. Some items such as machinery, raw materials, groceries, medical devices, prescription medication, and others are tax exempt.

If you sell taxable goods, register for a free sales tax license through Michigan Treasury’s online business registration. When you buy goods for resale, give your supplier form 3372 Michigan Sales and Use Tax Certificate of Exemption to claim the exemption.

Payroll tax

For 2026, Michigan’s withholding rate is 4.25% with a $5,900 personal exemption. See the Michigan payroll tax withholding rules for more information and due dates.

Other state taxes

When an out-of-state business sells or leases tangible personal property to a Michigan resident, they must register to pay a 6% use tax.

Licensed marijuana retailers pay a 10% Marihuana Retailers Excise (MRE) tax on sales and collect 6% sales tax from customers. Since January 1, 2026, wholesale marijuana sales also carry a 24% wholesale tax.

Other tax laws include the Bottle Deposit, 9-1-1 Surcharge, and the Insurance Provider Assessment Act (IPAA).

Understand your ongoing annual Michigan LLC fees

Michigan requires all owners of LLCs operating in the state to file a Michigan annual report.

File online through the MiBusiness Registry Portal with a MiLogin for Business account. Paper annual statements are no longer accepted.

Each year, for a regular LLC, you will pay an annual fee of $25. For a professional LLC, the annual fee is $75. The statement is due by February 15 each year (an LLC formed after September 30 skips the first February 15).

Professional LLCs pay a $50 late fee ($125 total). Regular LLCs have no separate late fee.

If an LLC misses 2 years of annual statements and doesn’t file within 60 days of the state’s notice, it falls out of good standing and its name becomes available to others. To restore it, file a Certificate of Restoration of Good Standing ($50) and pay $25 for each missed statement.

Learn more about ongoing Michigan LLC costs here.

Obtain relevant business licenses and permits

There is no generic business license in Michigan. However, you may also need a certificate, license, or permit to operate, depending on your business type. Learn more about getting a Michigan business license.

See Michigan’s official website to determine if your new business needs a certificate, license, or permit. Search by business type or read through the alphabetical list to find your business type. For every kind of business, you will see the certificate, permit, and business license requirements, if any.

Also, note that the local rules of the county, city, village, or township may differ from the state rules, and license costs in Michigan vary by industry. Home-based businesses are subject to the same laws.

Open a separate business bank account

Once you have a federal EIN and your LLC is registered in Michigan, you should open a separate business bank account for the LLC. Do not commingle business funds with your personal monies. If you need startup funding, look into small business grants in Michigan.

Having a business bank account establishes the company and may help limit liability to the amount invested in the company. This benefit is one of the main advantages of having an LLC to help protect your personal assets. In any case, it’s advised to consult a lawyer once your LLC is set-up to understand the legal requirements and how to maintain your LLC properly.

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