LLC Annual Report and Tax Filing Requirements in Michigan

If you're operating a limited liability company (LLC) in Michigan, then you'll need to follow the state's LLC laws to keep your company in good standing. As a Michigan company, you must file an annual statement and pay applicable business taxes.

This article covers the most important ongoing reporting and state tax filing requirements for Michigan LLCs.

Michigan LLC Annual Statement

In Michigan, every LLC must file an annual statement each year. The Michigan Department of Licensing and Regulatory Affairs will send you a pre-printed annual statement form approximately three months before the due date. You can either use this form or file your statement online.

You'll need your LLC's state-issued entity ID number to access the online form. Only a few pieces of information, such as the name and address of the LLC's registered agent, are required to complete the statement.

You must file the statement each year by February 15. (LLCs formed after September 30 don't need to submit a statement the next year.) As of 2023, the annual statement filing fee for a Michigan LLC is $25.

State Business Taxes in Michigan

LLCs are taxed as pass-through entities by default. If you have a single-member LLC, then you'll be taxed as a disregarded entity (sole proprietorship). If you have a multi-member LLC, you'll be taxed as a partnership. If you have a pass-through entity (like an LLC), the income passes through the company to its owners, who pay taxes on their share of the income.

No franchise tax. Some states require companies to pay a tax or fee for the privilege of doing business in the state. This tax is commonly known as a "franchise tax." Michigan doesn't impose such a tax.

Electing corporate tax status. While LLCs are typically taxed as partnerships, you can elect to have your LLC taxed as a corporation. You make this election by filing IRS Form 8832 with the IRS. Once you make this election at the federal level, you'll also be taxed as a corporation at the state level. If you elect to be taxed as a corporation, you must pay Michigan's corporate income tax. As of 2023, the income tax rate is a flat 6%. You'll need to file and pay estimated quarterly returns and payments to the Michigan Department of Treasury (DOT). You can find more information on the DOT's corporate income tax webpage.

Michigan Employer Taxes

Does your LLC have employees? If so, you'll need to pay employer taxes to the federal and state governments. In Michigan, like most other states, you must withhold employee wages and pay an unemployment insurance (UI) tax.

Withholding employee wages. If you're required to withhold federal income tax, then you must withhold state income tax in Michigan. You can register to pay this tax with the Michigan Treasury Online (MTO). Once registered, you'll need to file withholding taxes periodically (typically monthly or quarterly). You'll also need to file an additional form every year to reconcile your LLC's tax withholding. You can find these withholding tax forms online. You can see more details on how and when to file your taxes on the DOT'S withholding tax webpage.

Michigan UI tax. UI taxes are handled through the Michigan Unemployment Insurance Agency (UIA) under the Department of Labor and Economic Opportunity. You can register for these taxes online through the Michigan Web Account Manager (MiWAM). Then every quarter, you'll need to file your quarterly wage/tax report with the UIA using MiWAM.

Michigan Sales and Use Tax

If your business will sell taxable goods or services in Michigan, you must collect and pay sales and use tax. You'll register with the DOT through the MTO. Once you've registered, you'll be sent a sales tax license.

You must file your return and remit payment monthly or quarterly depending on your level of activity. Every year, you'll submit a separate form to reconcile, balance, and close the tax year. You can find the appropriate forms on the sales and use tax forms section of the DOT website.

In addition to state sales and use tax, you might be responsible for reporting and paying sales and use tax to your city or county. Make sure you check with your local taxing authorities for your reporting responsibilities.

For more information, check out the DOT's sales and use tax webpage.

LLC Registration in Other States

If your business operates across multiple states, then forming your LLC in Michigan might not be enough to satisfy your legal obligations. Many states require an out-of-state (foreign) business to register with the state if that business will be conducting activities in the state. Typically, if a business has a location (store, warehouse, or office) in the state or employs individuals in the state, you'll be required to register. Each state has its registration requirements, so be sure to determine when and how to qualify as a foreign business in the relevant state.

For specific guidance, check out our state guide to qualifying to do business outside your state.

If you need additional guidance, see our section on running an LLC. If you have legal questions specific to your situation, you should talk to a business lawyer. They can help you figure out your tax and filing obligations.