If you are looking forward to registering your Michigan LLC then you are in the right place. Here I have explained the simple 5 steps in which you can start your LLC in Michigan successfully. If you follow this guide thoroughly you will get all the necessary points that should be done while you are forming an LLC in Michigan. For your ease of understanding, I have divided it into steps and covered all the important points. Knowing how to start an LLC in Michigan becomes beneficial when you will have a look at the steps provided in this guide.

As you might be familiar that you will have to submit the forms and documents that will be needed to form an LLC. Likewise, you will have to submit the Articles of Organization, Forms, certificate of good standing, etc. If you want to start your Michigan LLC then you must be prepared to pay $50 registration fees. If you want to know the cost of documents and forms you must go through this guide to know more.

There are three ways that you can submit the Forms and necessary documents. You can Directly visit the office of the Secretary of State and submit. You can mail them to their mailing address. or you can visit their online official website of the Secretary of State. The Articles of Organization is considered a legal document as it contains all the essential information.

Start an LLC in Michigan

If you want to start your LLC in Michigan, then the safest way is to form a Michigan limited liability company. If you form a Michigan LLC then all your personal assets are secured. For example houses, cars, aircraft, boats, residential plots, personal bank account, etc. Everything is separated from the business if in the future the business faces loss. Then all your personal property is not affected, I have explained to you in detail how you can form your own Michigan LLC.

As I have explained how you can obtain the licenses and permits for your Michigan LLC. Where you have to submit the documents and what are the possible ways to reach them. Allow us to explain to you all the procedures and steps that you will have to complete to register your own LLC in Michigan.

Step 1 – Michigan Secretary of State (Name Search)

The first step that you have to while registering your Michigan LLC is you will have to choose a name for your Michigan limited liability company. You cannot choose any name you will have to follow the naming guidelines to get approval for the name. A few naming guidelines are disclosed down below you must keep in mind before selecting the name for your LLC. The name you select must comply with all the rules and regulations of Michigan naming guidelines. If you are new to forming LLC in Michigan then take a look at the complete guide regarding name search. The name you select must be simple and should have some meaning in it. It should be easy for all your valuable business clients to search for the name.

Naming Guidelines

Here you go I have mentioned to you all the naming guidelines that you will have to follow while choosing a name for your Michigan LLC. The name you select must comply with all these Michigan naming guidelines mentioned below. If you follow the naming guidelines then there very many positive chances that your name must be approved.

  • The name you select must have all the phrases like LC, L.C., LLC, Limited Liability Company, LP, LLP.
  • There are a few restricted words that you cannot use as it is used by the government and it can baffle the customers. For example FBI, State Department, Treasury, etc.
  • If you have valid licenses and permits then only you can use these words like Attorney, Bank, University, Doctor, etc.

Name Availability

Once you have selected a name for the Michigan LLC that complies with the naming guidelines. Then you will have to check the availability of the name. If you want to perform this task you will have to visit the (LARA) Michigan Department of Licensing and Regulatory Affairs. It is known to be an important step to start your LLC in Michigan. There you will have to find the business entity search, you will have to enter the name you have selected, you will see a list of names. If you do not see the name there in the list then it is not taken you can register it. If you see the name in the list then the name is already taken by another entity.

Buy Domain

This step is optional if you are willing to create a new website for your Michigan LLC. Then you can buy the domain, if you buy the domain then in the future you can easily increase the sales through the website of your LLC. If you do not want to create a website now, then you can preserve it for the future, buying it now is good before anyone does. Now you can buy the same name domain as per your LLC is and if in the future it is taken you cannot do anything right. So I recommend you to buy it for the future.

I Recommend you to select a name that can be easily searchable by your clients. You can also select a short name so that the clients can easily find you Michigan LLC. I would also like to recommend you that you must select more name in option (eg: 5) so that you don’t have to waste the time if the first name is not available and you can use another.

Step 2 – Choose Your Registered Agent

If you want to maintain your Michigan LLC, then you must hire a registered agent. The registered agent works from your side and submits all the documents to the government. As he also receives legal, notices, income proof, lawsuits, tax paperwork, etc. The work of the registered agent is to manage all your legal paper works and dealing and introduced them to the government. If you want to start your LLC in Michigan you must have a registered agent. They help you obtain the license and permits, all the taxes paper works, etc. If you hire a registered agent then it is his/her responsibility to keep the Michigan limited liability company up to date.

Who can be your registered agent?

Anyone you select as a registered agent must be a resident of Michigan state. There are many registered agents who provide you the service to be the registered agent for your Michigan LLC. You can choose your spouse, family member, friend, employees, or you yourself can be the registered agent.

I Recommend you to select a professional registered agent rather than anyone from your home or office. It is one of the safest things to select a professional registered agent as they have all the information regarding the circumstance. As you must know that it is important to have a registered agent who can work accordingly so that Michigan limited liability company remains in good standing with the state.

Step 3 – File The Michigan LLC Articles of Organization

As I mentioned earlier that you will have to submit the documents including the Articles of Organization to form the Michigan LLC limited liability company. If you want to form a legal LLC then you will have to submit the essential documents. The Michigan corporations Division is responsible to collect all the Articles of Organizations. There are two ways that you can submit the documents. You can go in person and submit them, You can mail all the documents with the forms Michigan Corporation Division. You must know the complete information on articles of the organization before starting the process.

While you are submitting the form you will have to provide the EIN of your Limited Liability Company. I have explained the Employer Identification Number in the different Sections. As I move further you will be able to see the EIN for Your Michigan LLC section. You must also provide the information that the formed LLC is member-managed or manager-managed. When you complete the Articles of Organization then you can submit the document according to your convenience including the $ 50 registration fees.

Mailing Address

  • Michigan Department of Licensing and Regulatory Affairs
    Corporations, Securities & Commercial Licensing Bureau — Corporations Division
    P.O. Box 30054
    Lansing, MI 48909

I Recommend you to file the articles of the organization in in-person as it might take less time compared to the time taken for mailing. Due to the current situation of Covid-19, I would like to prefer you provide your documents through the mail in order to prevent yourself from such a situation.

Step 4 – Create Your Michigan LLC Operating Agreement

The Operating Agreement is not a necessity to document when it comes to registering an LLC in Michigan. As you can keep it for a backup for the future as it reduces the risk for the owners. This document covers the outlines of the owners and the procedures of operating. This document has all the parameters covered for all the owners and members. If you want to start your LLC in Michigan and need to work in a positive environment then it is necessary to create an operating agreement.

As this document contains all the information it is considered a legal document in any of the future conflicts. This document also verifies that the formed Michigan LLC is legal and maintained properly. It provides security to your LLC in case of any conflicts in the future. In particular, do allow me to explain to you in-depth about the operating agreement.

I would like to recommend that you must create an operating agreement though it is not made compulsory by the state. This is one of the most important agreements or documents from the point of view of internal terms of business. It will help you in the future if any mishappening takes place between the members of the LLC.

Step 5 – Get Your Michigan LLC EIN

As you might be familiar with the social security number. Similarly, Michigan LLC also needs an identification number that is called Employer Identification Number. Once you have registered the LLC in Michigan then you must get the EIN. To acquire your own Employer Identification Number you will have to visit the official website of Internal Revenue Services. You can visit the official website of the Michigan Secretary of State website. You complete the forms and attach the necessary documents and submit the forms. It is necessary to learn in-depth about EIN before filing it. There are many benefits to have the EIN for your Limited Liability Company. As I have mentioned a few of them so that you can have an idea.

  • If you are looking forward to opening a business bank account then you will have to provide the Employer Identification Number.
  • The Employer Identification Number also helps you to manage all your federal and state taxes.
  • If you want to recruit employees in your Michigan LLC then you must have the Employer Identification Number.

I Recommend getting your EIN as soon as your LLC has been created and confirmed by the Michigan secretary of state. It is also highly recommended to file your EIN through the way of online by visiting the official website of the internal revenue service.

Cost To Form Michigan LLC

It is important to learn about the costs that I should pay to start your LLC in Michigan. So, to provide you with the information related to the cost I have provided you a handy note on different types of costs that might occur while forming your Michigan LLC. You can eliminate a few costs that are not compulsory as per your need.

Services
Fees
Michigan LLC Name Search
Free
LLC Name Reservation Fee
$10 online/paper filings
Michigan LLC Domestic Fees
$50 online/paper filings
Michigan LLC Foreign Fees
$50 online/paper filings

The estimated cost for a domestic Michigan LLC would be between $50 – $60. Now if you not a resident of The U.S. then it would require you to file for the Foreign Michigan LLC that would estimate between $50 – $60.

 

Michigan LLC Important Details
The Form
Articles of organization
Agency
Department of Licensing and Regulatory Affairs
The Filing Fee
$50
Online Filing
Yes
Expedite Option
Yes
Franchise Tax Report Due Date
February 15

After Formation Process For Michigan LLC

Once you have registered your LLC successfully, then are a few forms that you will have to complete. There are few process steps left that you will have to do once you start your LLC in Michigan. After you complete the After filling process then your LLC is 100% ready. As you might be familiar with the licenses and permits that you need to operate an LLC legally. All the licenses and permits depending upon your business type.

Michigan Licenses and Permits: To operate the LLC legal in Michigan State you must have all the appropriate licenses and permits. As you might know that all the states have different rules and regulations, so you must get all the licenses and permits as per your state requirement. To acquire the license and permits to operate the Michigan LLC then you will have to visit the official website of the Michigan Secretary of state or you can go in person to the office. Here I have provided a few links if you want to know more about state and federal requirements then you can go through them.

  • If you are willing to know more about federal laws then you must visit the U.S. Small Business Administration (SBA).
  • To learn more about the Michigan State laws then you will have to visit Michigan’s state licenses Search.

Michigan LLC Taxes

Sales Taxes: Once you have formed your Michigan limited liability company successfully, and your business is to sell the products physically to consumers. Then you must have the Seller’s permits, this will allow you to collect the sales & Use tax from the customers. If you want to obtain the seller’s permit then you will have to visit the official Michigan Department of Treasury Website. Having the Seller’s permit you will be able to collect the taxes from the customers. Those are imposed by the states, municipalities, & counties on the taxable goods or services.

Employer Taxes In Michigan: You may have to register for the employer tax if you have hired employees in your Michigan LLC. You may have to register for the Unemployment Insurance Tax on behalf of your employees. Including you will have to register for the Employee Withholding Tax in the Michigan Department of Treasury.

Federal Requirements: As I mentioned earlier that you will have to provide income proof to the internal revenue services every year. Once you provide them the income statement then on the basis of that your certificate of good standing is organized. You must send the business type in which you fit in such as.

  • If the formed Michigan LLC was formed & managed by multiple owners and then you will have to file the 1065 Partnership Return Form.
  • If the LLC is formed and managed by a single owner then you will have to file the 1040 schedule C Form.

Hiring Employees

As you might know that you must require employees if you are opening an LLC that requires more people to work. If you want to form Michigan LLC you must know that you have to comply with certain rules and regulations provided by the state for selecting employees. For your information, I have provided the list of rules below.

  • You should verify that the employee is able and allowed to work in the USA.
  • In order to hire the employees, you have to report them as “new hires”
  • For employees, you have to provide the worker’s compensation.
  • Withholding employees tax.
  • You have to print out the workman compliance poster and place them in the visible area near your workplace.

Avoid Automatic Dissolution

If you are forming a Michigan LLC, then you must know that the government has full rights to dissolve your firm/LLC if you are not paying any taxes or costs on time. Although the government is not that harsh that they dissolve your LLC without any reason. So, you must make sure that you have to pay all the taxes and cost on time in order to remain in good standing. For this instance, it is highly recommended to have a professional registered agent that can help you to remind you for the renewal of license and permits along with the dates of paying the tax. It is recommended to have a professional registered agent because they are highly trained regarding various circumstances.

Tip – Separate Your Personal and Business Assets

Whenever you create an LLC and include the personal assets, these assets are highly at risk at the time of dissolution. It is known as the corporate veil in terms of business. So, you must keep in mind that you should separate your personal assets and business assets. There are two ways that you should know for protecting your LLC in Michigan.

  • A bank account in the name of the business must be opened.
  • You must get a business credit card.

Michigan Foreign LLC Registration

As I mentioned earlier that if you are forming an LLC then you must form and Foreign Michigan LLC. Usually, a foreign LLC has many benefits when compared to a domestic LLC. If you already have an LLC registered LLC and you want to form an LLC in Michigan then you will have to register as a foreign LLC. This Certificate will allow you to operate your LLC in multiple states as a single entity. You can perform this process by mailing the documents and forms including the registration fees.

Mailing Address

  • Michigan Department of Licensing and Regulatory Affairs
    Corporations, Securities & Commercial Licensing Bureau
    Corporations Division
    P.O. Box 30054
    Lansing, MI 48909

How To Obtain A Certificate of Good Standing?

The Certificate of good standing is an essential document & you might need this document in many situations. As I mentioned earlier that you will have to submit the income proof to the IRS. Your overall performance is packed inside the Certificate of good standing. This Certificate also ensures that Michigan LLC was formed legally and maintained properly. To acquire the Certificate you will have to visit the official website of the Michigan Secretary of state official website. There are many situations in which the certificate of good standing is helpful.

  • If you are looking forward to gathering some funds from the banks then you will have to provide the Certificate.
  • If you want to form an LLC in a different new state then you must need a Certificate.
  • If you want to renew the licenses and permits, at the time of renewal you will have to provide the Certificate of good standing.

How to Dissolve an LLC in Michigan

In the future, it might happen that you and your partners decide to dissolve your LLC for any reason. There are several reasons such as automatic dissolution by the government, Dissolution as per the agreement, or facing loss in the business. So, for this instance, you can dissolve your LLC, but you cannot dissolve it without a legal procedure. If you dissolve non legally, then you may have to pay more taxes and penalties. So, for this reason, there are two steps that you have to follow.

  • You have to close your business accounts.
  • Fill out the articles of the organization.

It is highly recommended to fill out the articles of dissolution then only your LLC in Michigan will be dissolved legally. If you have to avoid the taxes and penalties then pay all the accounts before closing them. I hope that you must have got all the information related to “how to start an LLC in Michigan”.

Frequently Asked Questions

How much time does it take to start an LLC in Michigan?

Once you have submitted the documents and forms including the registration fees. Then it might take up to 3-5 days to completely form an LLC.

How to change the name of the Michigan LLC?

If you have a domestic LLC and if you want to make changes it must be done on the Article of organizations. You will have to submit the Certificate of Amendment.

How much does it cost to form an LLC in Michigan?

If you want to register your LLC in Michigan then you have to pay $50 registration fees including you will have to submit the Articles of Organizations.

Is the Employer Identification Number necessary for an LLC?

Yes, you must have the EIN if you want to hire employees in your LLC.