How to Form an LLC in Michigan
To form an LLC in Michigan, here's everything you need to know.
1. Choose a Name for Your LLC
Under Michigan law, an LLC name must contain the words "Limited Liability Company" or the abbreviations "L.L.C." or "LLC."
Your LLC’s name must be distinguishable from the names of other business entities already on file with the Michigan Department of Licensing and Regulatory Affairs. Names may be checked for availability by searching the Michigan business name database. You may reserve a name for six months by filing an Application for Reservation of Name with the Michigan Department of Licensing and Regulatory Affairs Bureau of Commercial Services. The application may be filed by email or by postal mail. The filing fee is $25.
2. File Articles of Organization
A Michigan LLC is created by filing Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs Bureau of Commercial Services. The articles must include: the LLC's name and address; its purpose; the name and address of the LLC’s registered agent; and whether the LLC's duration will be perpetual or for a specified period. If the LLC will be managed by managers instead of by members, insert a statement to that effect in Article V. The articles may be filed by email or by postal mail. The filing fee is $50.
3. Appoint a Registered Agent
Every Michigan LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued. A registered agent may be a Michigan resident, a Michigan corporation, a foreign corporation with a certificate of authority to transact business in Michigan, a Michigan LLC, or a foreign LLC authorized to transact business in Michigan. The registered agent must have a physical street address in Michigan.
All of the paperwork and procedural steps to start a limited liability company in Michigan can be done online using Nolo's Michigan Online LLC Formation application.
4. Prepare an Operating Agreement
An LLC operating agreement is not required in Michigan, but is highly advisable. For help creating an LLC operating agreement, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo) or use Nolo’s Online LLC. If an operating agreement is created, it need not be filed with the Articles of Organization.
5. Publication Requirements
6. Comply With Other Tax and Regulatory Requirements
Additional tax and regulatory requirements may apply to your LLC. These may include:
EIN: If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online application on the IRS website. There is no filing fee.
Business Licenses: Depending on its type of business and where it is located, your LLC may need to obtain other local and state business licenses.
Department of Treasury: In some cases, for example if you have employees or will be selling goods and collecting sales tax, you’ll need to register with the Michigan Department of Treasury (DOT).You can register online using the DOT’s e-Registration application or by mail.For more information on state LLC tax registration, check Nolo's article, LLC Annual Report and Tax Filing Requirements: A 50-State Guide
7. File Annual Statements
All LLCs doing business in Michigan must file an annual statement with the Department of Licensing and Regulatory Affairs . The report must be filed by February 15 after the year of formation or qualification; however, if the LLC is organized or qualified after September 30, it need not file a statement on the February 15 immediately after its formation or qualification. A pre-printed annual statement, BCS/CD-2700, is mailed to the LLC’s resident agent at the registered office approximately three months prior to the due date. The report can be filed online or by mail. The filing fee is $25.
8. Foreign LLCs Doing Business in Michigan
To do business in Michigan, all LLCs organized outside of the state must register with the Michigan Department of Licensing and Regulatory Affairs. Foreign LLCs must appoint a registered agent for service of process physically located in Michigan or appoint the Department of Licensing and Regulatory Affairs to be the agent. To register, file an Application for Certificate of Authority to Transact Business in Michigan. The application may be filed by email or by postal mail. The filing fee is $50.
The completed application must be accompanied by a Certificate of Good Standing or Existence from the foreign LLC’s home state, dated no more than 30 days prior to the filing of the certificate.
Before filing, make sure the LLC’s name is available in Michigan by checking the Michigan business name database. If the name is not available, the foreign LLC must adopt an assumed name for use in Michigan. The assumed name becomes the LLC's name in Michigan to be used in all transactions and in its dealings with the state. Item 2 of the Application for Certificate of Authority to Transact Business in Michigan is to be completed for this purpose only. Foreign LLCs may also transact business under other assumed names by filing separate Certificates of Assumed Name.