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Forming a limited liability company in Michigan is simpler and less expensive than in many other states. For many business owners, an LLC provides an ideal balance of liability protection and organizational flexibility.
To help you understand how to start an LLC in Michigan, the MarketWatch Guides team created this step-by-step walkthrough of the process. We cover the LLC formation fees and other state filing costs your business will face in Michigan, as well as how one of the top LLC services can help ensure you get your company off on the right foot.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
How To Create a Michigan LLC in 5 Steps
You can create a Michigan LLC online through the Corporations Online Filing System, by postal mail or in person. The state of Michigan also offers expedited service options for speedy LLC formation.
Starting an LLC in Michigan includes the following steps:
- Choose a name for your Michigan LLC
- Appoint a registered agent
- Prepare and file articles of organization
- Prepare your operating agreement
- Get an employer identification number
Generally, each state follows the same five steps for establishing an LLC, but there are a few key differences depending on the location. These include (but aren’t limited to) the amount of the state’s initial or annual filing fee, details required in the articles of organization and tax regulations.
1. Choose a Name for Your LLC
Michigan’s Department of Licensing and Regulatory Affairs specifies that LLC names must be distinguishable from other corporations’ names, meaning the name must not already be taken. COFS has an online database to search for existing LLC names.
Your LLC’s name must indicate the type of services your business offers. For example, if you’re selling organic essential oils, your name can’t be “Michigan’s Medical Office.” LLC names in Michigan also can’t include the words “corporation” or “incorporated” or the abbreviations “corp.” or “inc.”
2. Appoint a Registered Agent
Every LLC in Michigan must have an appointed registered agent. This person is legally responsible for handling important documents, such as tax notices or lawsuits. Generally, you can name yourself or a trusted individual. Or, you can hire a third-party or another person to act as your registered agent. In Michigan, you can also name an in-state corporation, foreign corporation or LLC that’s approved to do business in the state.
Some business owners opt to name themselves as the registered agent since it’s free and gives them more control over the LLC process. Keep in mind that if you choose to be your own registered agent, your name and address will be on public record.
3. File the Articles of Organization
Filing the LLC’s articles of organization is a critical step. This document will include your LLC name, the registered agent’s name and more.
For a Michigan LLC, you must include the following information in your articles of organization:
- LLC name
- Purpose of your LLC (which determines what your company is permitted to do under the Michigan Limited Liability Company Act)
- Duration of your LLC (if it’s not permanent)
- Registered agent’s name and address
- Name of any managing members (if applicable)
- Your signature, name and business telephone number
There are three ways to submit your articles of organization for filing and approval: online through COFS, by mail or by dropping the documents off in person at the Corporations Division office in Lansing. You’ll also need to include the $50 filing fee with your documents.
| Submission Option | How To Submit Michigan Articles of Organization |
|---|---|
| Online | COFS |
| Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau Corporations Division P.O. Box 30054 Lansing, MI 48909 | |
| In Person | 2407 N. Grand River Ave. Lansing, MI 48906 Telephone: 517-241-6470 |
4. Create Your Operating Agreement
Creating an LLC operating agreement is an optional step in Michigan. However, this agreement can help protect your business, and we recommend creating one.
An operating agreement is a legal document that outlines accounting and financial debts, distributions of income and assets, management responsibilities and more. There are free templates available online. You can also hire a lawyer or an LLC service to create a custom operating agreement template.
5. Get an Employer Identification Number
Your LLC can get an employer identification number from the IRS once your articles of organization are accepted and filed. Getting an EIN allows you to do tasks such as opening a business bank account, hiring employees and entering into contracts with vendors. The EIN acts as a type of Social Security number for your business and is used to identify your company for tax purposes and annual reporting.
You can get your EIN through the IRS website, which is available Monday through Friday from 7 a.m. to 10 p.m. Eastern. The process only takes a few minutes.
How Much Does It Cost To Form an LLC in Michigan?
It costs $50 to form an LLC in Michigan, making it very affordable to incorporate a business in the state. The annual fee to renew your LLC is $25, which is also fairly cheap compared to other states’ annual LLC costs. For example, it costs $500 in Massachusetts just to file the articles of organization and another $500 for the annual fee.
There are additional costs if you choose to expedite your LLC application documents rather than using standard processing.
| Expedited Service Speed | Fee |
|---|---|
| 1 Hour | $1,000 |
| 2 Hours | $500 |
| Same Day | $100 |
| 24 Hours | $50 |
While forming an LLC in Michigan is affordable, you may face some ongoing costs. Many states have a franchise tax, but Michigan has a 4.95% business-income tax and a 0.8% modified gross receipts tax on LLCs. The Michigan Department of Treasury has a list of year-specific business tax forms.
What Is the Cheapest Way To Start a Michigan LLC?
The cheapest ways to start a Michigan LLC include filing the articles of organization yourself or hiring an LLC formation company that includes this service. Some LLC services charge fees to complete paperwork and provide other services. These can be helpful, but they’ll increase your total costs. The Michigan Small Business Development Center also offers free small-business consulting.
If you’re not in a rush, we recommend not expediting your articles of organization since those service fees add $50 to $1,000 to total costs.
Michigan veterans can qualify for fee waivers for all documents except the articles of organization. You’ll need to submit a waiver request form and evidence of veteran status with your LLC documents.
Pros and Cons of Forming an LLC in Michigan
While the main benefit of forming an LLC in the state of Michigan is liability protection, which separates your personal assets from your business assets, there are other pros and cons to consider as well.
Basic liability protection: An LLC protects Michigan business owners’ personal assets from the company’s potential debts and liabilities.
Tax benefits: Michigan LLCs are considered pass-through entities, which means they’re not subject to corporate income taxes. An LLC may also qualify for the Small Business Alternative Credit.
Affordability: Michigan’s state-filing fee is only $50, and renewal each year costs $25 fee.
Annual costs: While Michigan’s annual filing fee is only $25, other states don’t charge an annual fee.
Privacy concerns: If you name yourself as the LLC’s registered agent, your name and address will be public information.
What To Do After You Start an LLC in Michigan
There are a few additional steps to complete once you’ve filed your initial form in Michigan.
Register for State Taxes
You can register your LLC for state tax reporting through Michigan Treasury Online. You’ll pay the state sales tax and business tax, and you could qualify for tax credits, such as the Small Business Alternative Credit. This credit reduces taxes for specific small businesses. Since taxes can be complicated for certain types of LLCs, we recommend hiring a licensed tax professional to navigate these rules.
Set Up a Business Banking Account
Creating a business bank account helps protect your personal assets if your LLC is sued. In this scenario, only the business bank account would be vulnerable in a court judgment or settlement. That’s why it’s helpful to keep your personal assets completely separate from your business assets. This can also make accounting and tax filing easier.
Stay on Top of Your Annual Reports
Filing annual reports is the most critical aspect of preserving your LLC. This report confirms that the LLC is still in business and has the same registered agent and address. The state may consider your LLC inactive if you don’t file the report on time, which means your business name would become available to any other company.
The Department of Licensing and Regulatory Affairs will send a preprinted form to your business’ registered office 90 days before the Feb. 15 due date. You can also file your annual report online.
Our 2025 LLC Formation Survey: Key Findings
To learn more about their experience navigating the LLC formation process, the MarketWatch Guides research team surveyed 1,000 business owners in 2025. Their responses may help you know what to expect and learn what to avoid when forming your LLC in Michigan. Here are some of the most notable takeaways:
- Asset and liability protection was the most common reason given by respondents when asked why they wanted to form an LLC, with 47% selecting this answer. Other popular reasons included additional credibility for their businesses (21%) and tax benefits (20%).
- Most respondents said they filed digitally, with 70.1% indicating they formed their companies online, either with the help of an LLC formation service or on their own.
- Almost three-quarters of business owners (74%) said they hired an LLC formation service to help them with the process.
- A sizable majority of people who used a formation company (83%) said they were either satisfied or very satisfied with the service they got from their provider.
- Most business owners (65%) said they paid $300 or less for professional LLC formation services.
We also asked the business owners we surveyed to tell us what advice they would give other entrepreneurs about navigating the LLC formation process. While we received a wide variety of responses, a few general pieces of advice came up regularly in the results, including recommendations that you:
- Research the process thoroughly
- Start the LLC formation process as soon as possible
- Beware of hidden fees
- Get your documentation prepared and organized early on
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Michigan LLC: Frequently Asked Questions
Here are some answers to frequently asked questions about how to start an LLC in Michigan:
It costs $50 to file for an LLC in Michigan and $25 to renew it annually. Costs may be higher if you expedite the process or hire an LLC service.
The main benefit of forming an LLC in Michigan is the limited liability protection afforded by separating personal assets from business debts and legal liabilities.
Yes, you need to pay taxes on the income you receive from your LLC in Michigan. The amount and type of taxes depend on the nature of your business and how you elect to be taxed.
When filed online, Michigan LLC paperwork is usually processed within two weeks. Processing can take up to a month if you incorporate through the mail. Expedited processing — as fast as one hour — is available at an extra charge. The expedited service can cost $50 to $1,000, depending on the form and the requested turnaround time.
Some of the downsides to starting an LLC include more fees and paperwork compared to structures like a sole proprietorship. In addition, an LLC may be less attractive to investors than other corporate structures, making it more difficult to raise large amounts of capital.
*Data accurate at time of publication.
Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
