Deal alert! Northwest will form your LLC for $39 (60% discount). See details.
To start an LLC in Michigan, file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). This costs $50 and takes 10 days for approval.
There are 5 steps to follow:
- Choose an LLC Name
- Select a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Get an EIN
If you want to form your LLC yourself, follow our free guide below.
If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(We recommend Northwest. We've reviewed all the top companies in the industry. And Northwest is our #1 pick for prices, customer support, and address privacy. Check out Northwest vs LegalZoom to learn more.)
How much does it cost to start an LLC in Michigan?
It costs $50 to start an LLC. And then it costs $25 per year.
What are these fees for?
- The $50 is to file the Articles of Organization – the document that creates an LLC.
- The $25 per year is for your Annual Report – a mandatory filing that keeps your LLC in good standing.
To learn more about LLC Costs, see LLC Costs in Michigan.
Veterans: You can form an LLC for free in Michigan. Please read Michigan Veteran LLC for instructions.
How long does it take to get an LLC in Michigan?
If you file by mail, your LLC will be approved in 10 business days (plus mail time).
But if you file online, your LLC will be approved in 10 business days.
Please see How long does it take to get an LLC in Michigan to check for any delays.
Here are the steps to forming an LLC
1. Search your LLC Name
Search your LLC Name to make sure it’s available in the state.
You need to do this because two businesses in the state can’t have the same name.
First, search your business name and compare it to existing businesses in the state. You can make sure the LLC Name you want is unique from existing businesses using the Business Entity Search.
Second, familiarize yourself with the state’s naming rules (so your LLC gets approved).
We’ll explain both in more detail here: Michigan LLC Name.
2. Choose a Registered Agent
The next step is to choose a Registered Agent.
A Michigan LLC Registered Agent is a person or company who accepts legal mail and state notices on behalf of your Limited Liability Company.
Note: In Michigan, a Registered Agent is also called a Resident Agent. We may use either term.
Who can be an LLC Resident Agent in Michigan?
You have 3 options for who can be the Resident Agent:
- You
- A friend or family member
- A Registered Agent Service
State law requires that all LLC Registered Agents have a physical street address in Michigan. PO Boxes aren’t allowed.
And the Resident Agent’s name and address will be listed on public records.
If you don’t have an address in Michigan, or you want more privacy, you can hire a Registered Agent Service for your LLC.
Maine Registered Agent Services keep physical street addresses in Michigan to meet state requirements – and our recommendation will also keep your information off public records.
We recommend Northwest Registered Agent
Our favorite feature about Northwest is they’ll let you use their office address throughout your LLC filing. This way, you can keep your address off public records.
They’ll also scan any mail sent to your LLC and upload it to your online account.
Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
3. File Articles of Organization
To start an LLC, you need to file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA).
The Michigan Articles of Organization costs $50 if you file online.
This is a one-time fee to create your LLC.
If you want to file this yourself, see our step-by-step guide: Michigan LLC Articles of Organization.
Or, you can hire a company to do it for you.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(Learn why Northwest is #1 in Northwest vs LegalZoom)
4. Create an Operating Agreement
An Operating Agreement serves as a “companion” document to the Articles of Organization.
The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.
Additionally, some banks require an Operating Agreement when you open an LLC bank account.
And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.
That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.
Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with the state or the IRS (Internal Revenue Service). Just keep a copy with your business records.
You can download a free template below.
Then, learn how to fill it out by watching our step-by-step Michigan Operating Agreement video.
5. Get an EIN for your LLC
The next step is to get a Michigan LLC EIN Number from the IRS for your LLC.
Note: An EIN Number is also called a Federal Tax ID Number or Federal Employer Identification Number.
An EIN Number is used to:
- identify your LLC for tax purposes
- open a business bank account
- apply for business licenses and permits
How much does an EIN cost?
Getting an EIN Number from the IRS is completely free.
How long does it take to get an EIN?
If you apply online, it takes 15 minutes.
If you apply by mail or fax, it can take 1-3 months.
How can I get an EIN?
US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.
Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.
What do I do after my LLC is approved?
After your LLC is approved, there are some additional steps.
Open an LLC business bank account
You’ll want to open a business bank account for your LLC.
This makes accounting and record-keeping much easier for your business finances.
Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.
Get business licenses and permits
Good news, Michigan doesn’t have a state-level general business license.
However, the state does require special licensing for some industries through LARA’s Corporations and Commercial Licensing Bureau.
And depending on where your LLC is located, you may need a local business license or permit.
For example, if you want to start a daycare, you may need a business license from the city or county.
You can learn more on our Michigan LLC Business License page.
File your LLC Annual Report
All Michigan LLCs must file an Annual Report every year.
The Annual Report keeps your LLC in good standing with the state.
Note: In Michigan, the official name for an Annual Report is actually the Annual Statement. They both mean the same thing, so we will keep it simple and call it the “Annual Report”.
How much does a Michigan Annual Report cost?
The Annual Report filing fee is $25 per year.
When is the Annual Report due?
Your LLC Annual Report is due by February 15th, every year.
When is my first Annual Report due?
Michigan uses your LLC’s Date of Organization to decide when your first Annual Report is due. Your Date of Organization is the date your LLC was approved.
If your LLC’s Date of Organization is between January 1 and September 30, your first Annual Report will be due by February 15 of the following year.
For example, if your LLC was approved on January 23, 2025, your first Annual Report is due by February 15, 2026.
If your LLC’s Date of Organization is between October 1st and December 31st, your first Annual Report will be due by February 15 two years later.
For example, if your LLC was approved on November 3, 2025, your first Annual Report is due by February 15, 2027.
How do I file my LLC Annual Report?
You can file your LLC’s Annual Report online or by mail. We recommend the online filing because it’s easier to complete.
Follow our step-by-step guide here: Michigan LLC Annual Report.
File and pay taxes
LLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.
Said another way, the owners pay taxes for the LLC as a part of their personal tax return.
How will my LLC be taxed?
By default, an LLC is taxed by the IRS based on the number of owners your LLC has:
- A Single-Member LLC is taxed like a Sole Proprietorship.
- A Multi-Member LLC is taxed like a Partnership.
Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.
Besides federal taxes, there are also state and local income taxes – and sales tax. Learn more in Michigan LLC Taxes.
How to Start an LLC in Michigan FAQs
Can I start an LLC online in Michigan?
Yes, you can file your LLC online. The Articles of Organization filing fee is $50.
When you start your LLC online, it will be approved in 10 business days.
What are the benefits of an LLC?
The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.
This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.
This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.
Another benefit is LLC pass-through taxation. Pass through taxation means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.
And Michigan state income taxes are very similar, since the state honors the federal tax treatment of your LLC.
To learn more, please see How are LLCs taxed.
Is Michigan a good state to start an LLC?
Whether Michigan is a good state to start an LLC depends on where you live – and where you’re doing business.
Meaning, if you live in or do business in Michigan, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.
For example, if you form an LLC in Delaware, but live in and conduct business in Michigan, you’ll also need to register your Delaware LLC in Michigan (and pay extra fees). And you’ll end up paying Michigan taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you live in and conduct business in Michigan, then yes, it’s a good state to start a business. If you don’t live in and do business in Michigan, then no, it isn’t a good state to start a business.
Real estate exception: If you’re purchasing real estate outside of Michigan, you should form your LLC in the state where the property is located.
For more information, please see Best State to Form an LLC.
What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?
The main differences between Domestic LLCs, Foreign LLCs, and Professional LLCs are where they are formed and their business purpose.
A Domestic Limited Liability Company is an LLC that is formed in its “home state”, meaning, where the business owner lives and does business.
For example, if you live in and do business in Michigan, you would form your Domestic LLC in Michigan.
A Foreign Limited Liability Company is an LLC that is formed in a state that isn’t its home state. In this case, the term “foreign” simply means that the LLC is foreign to its “home state”.
For example, if you live in and do business in Michigan, you would form your Domestic LLC in Michigan. If you later expand into Ohio, you would register your existing Michigan LLC as a Foreign LLC in Ohio.
Said another way, LLCs are created at the state-level.
And if you want your LLC to do business in two separate states, you have to form or register an LLC in both states.
This works by forming a Domestic LLC in your home state, and a Foreign LLC in the other state.
What is a PLLC?
A Professional Limited Liability Company (PLLC) is a type of LLC formed for the purpose of providing “professional services”.
In this case, “professional” refers to business types that require special permissions (like a license, registration, or certification from the state) in order to do business legally.
For example, architects, attorneys, and social work counselors, doctors, and veterinarians often form their business practices as PLLCs.
You can read more about PLLCs, their availability, and their stricter requirements in: What’s a Professional LLC?
And for more information on Foreign and Domestic LLCs, please see:
References
Michigan LLC Act
Michigan LARA: Limited Liability Companies
Michigan Secretary of State: LLC Form Fee List
Michigan Secretary of State: Entrepreneur’s Guide
Michigan Department of Treasury: Business Taxes
Michigan Secretary of State: Waiver of Fees for Veterans
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Michigan LLC Guide
Looking for an overview? See Michigan LLC
Hi Matt,
I am a nonresident trying to open an LLC for an online business. I don’t have a united states credit/debit card. So when I made the payment last time. They gave me an error that address not verified. The form was not properly submitted and it showed as an incomplete form.
I used the address of my registered agent. I am using my card own card from out of USA to make this payment. Should I use the address of my ID card? please advise.
Hi Ali, I would use whatever address is associated with the method of payment.
We recently registered our LLC in Michigan using L.L.C.
Just today I found your website and discovered we could have done the LLC without periods. How hard would it be to change to LLC with State of Michigan?
Mark
Hi Mark, it’s not material. Meaning, you can use periods or leave them out, regardless of what’s filed with the state. No one really checks and it’s not enforced. If you want to eliminate any doubt though, you can file a Certificate of Correction with the Michigan Secretary of State.
I started my LLC about a year ago. Just recently, I decided to change the business name. I filed for a new Articles of Organization. Hoping to be approved. However, I’m wondering if I did process incorrectly. Should I have sent in an Article of Amendment first? Or do I file that after the new name is approved? Do I need to dissolve the former name? I’m a single small owner business. No employees.
Thank you in advance!
Hi Michelle, it sounds like you formed two LLCs! Did the new LLC get approved? If so, did you set up a bank account with the first LLC and use it for other things? We’ll see what we can do to help you troubleshoot it. For reference, filing the amendment is the way to change an LLC’s name.
Hi Matt,
Thank you for the response! Unfortunately, I did start a second LLC. Opened a checking account & EIN number for the new name. I was given the advice i need to dissolve the first LLC. Is that right? Then close the first checking account out. I’m very small online buisness.
Thanks!
You’re welcome Michelle. Sounds like the 2nd LLC is all set up, so hey, you still accomplished what you wanted!
It would be good to dissolve the 1st LLC by filing a Certificate of Dissolution (see MI LARA: Dissolution) and requesting a Tax Clearance Certificate from the MI Department of Treasury (see Selling or Closing Your Business).
And then you can also cancel your old EIN Number. Hope that helps.
Great information! Thank you!
You’re welcome Michelle!
Hi Matt
How much(in percentage) Sale tax or income tax required by Michigan state?
For Michigan llc
I’m not sure as we’re not a tax firm. I recommend speaking with an accountant.
Hi Matt! Super helpful information. If one member is in MI and the other in NY, do we need to create an LLC in both states?
Thanks Avantika! That’s great to hear. Where an LLC should be formed has more to do with where it’s “transacting business”. What kind of business is this and where will it be operating, or ran from?
Hi Matt
I want to start my new LLc. can you do it for me?
please send me the information so we can start.
Thanks
Hi Ali, we don’t offer filing services at this time. Our website provides instructions if you’d like to file yourself. If you want to hire someone, we recommend Northwest Registered Agent. Hope that helps.
This guide is super comprehensive and much appreciated. The question i have is, are all these steps kept up to date? I see comments and answers above from earlier this year (2020) all the way back to 2017. So i am assuming the answer is yes, what appears on this page reflects all current legal and procedural necessities and leaves out nothing that is crucial/basic.
Thought it was worth checking anyway, before i continue organizing my plan (to form an LLC in Michigan).
Thanks again!
Hi C, you’re very welcome :) Yes, we keep all our guides up to date. Thanks!
Hi Thank you for all the information. I want to know whether I could use my Resident Agent’s address and contact information on my business website. Thanks.
Hello, you’re very welcome. If business mail and packages aren’t going to be sent there, usually it isn’t a big deal. However, you’ll need to check on that with the Michigan Registered Agent you hired.
Thanks a lot for replying!
You’re welcome :)
Hi Matt,
I am an indian citizen. I wish to start an LLC in Troy Michigan. Do I need to have a physical address in michigan, for the same? Can I have an LLC formed without any physical address in the US? However I would like to start a business which could generate revenue in US without having a physical address in US. e.g A job placement consultancy. Can this be possible in Troy?
Hi Rajiv, the Michigan LLC Articles of Organization only asks for the address of your Michigan Registered Agent. An LLC can be formed in Michigan without a physical presence, however, you may have some issues opening an LLC bank account in Michigan. The bank may want a physical address other than the address of your Registered Agent. Each bank is different though. It’s a good idea to get on the phone and speak to a few different banks. We recommend asking to speak with the branch manager to get the best information. As a non-US resident, here are some other articles you may find helpful. These would be completed after the LLC is approved:
– non-US resident getting EIN for LLC without SSN or ITIN
– non-US resident opening LLC bank account in the US
– foreign-owned single-member LLC and Forms 5472 and 1120
I have been looking for a site that would completely explain everything and your site is awesome. I have one question, I am looking at starting my own road side produce stand selling fresh produce and fresh eggs, do I need to have a business plan in place or is everything that you have provided here enough to submit and get my business off the ground legally? Thank you.
Thanks Kim! Glad you’re finding it helpful. Nope, you don’t need a business plan in order to start your LLC. Hope that helps.
Matt,
You are a miracle! I happened across your video on YouTube and have had every question answered. I am starting my own production company on January 1st, and was feeling a bit anxious about it. Paranoid is more like it. I didn’t want to forget to do something, and have it adversely affect my down the line.
I spoke with someone at Northwest yesterday, and I believe I’m gonna go with them. It’s a load off of my mind. Thanks!
Ann
Hi Ann, thank you! I know the feeling. Very natural when you’re starting out. It fades away over time ;) Glad you had a nice conversation with them. I think they have great customer service. Happy New Year!
Hi! Thanks so much for this excellent resource. Question for you: I would like to set up an LLC for a condo I will be buying and renting out. The condo (and rent payer) is located in Colorado. I (rent collector) am located in Michigan. Are there legal requirements for where I should set up the LLC? Should I set it up as a Michigan LLC or a Colorado LLC?
Hey Denise! You’re very welcome :) Where to form your LLC is based on where you’re “doing business”. Since your property will be located in Colorado and you’re collecting rents there, you’ll be doing business in Colorado and a Colorado LLC is likely the way to go. Hope that helps.
Hi Matt, Just got back the approved Articles of Organization I filed with the state of Michigan after using this website. This website was so helpful!!! I have one question about my LLC name after I looked at the papers sent back from the state. On the Articles of Organization under Article I, I had put a comma in the name of my company before “LLC”. The state returned the Articles of Organization as “FILED” with a stamp at the top. The stamp in the third line says “ID: My Business Name LLC” (not my real business name of course, just for this question) with no comma before the “LLC”. Did the state drop the comma before “LLC”? Did they change my business name? Or can I proceed with my business name as I planned: “My Business Name, LLC”
Hey Alice, congratulations! You can proceed with your business name as planned (My Business Name, LLC). The state didn’t change your LLC name, they are just “normalizing” their records for their database. If you look at the Michigan LLC Act, Section 450.4204 (1), you’ll see “with or without periods or other punctuation“. Hope that helps!
This website is a fantastic resource!! I will be forming an LLC in the next couple of weeks, and the costs through some of the services just didn’t seem right. Your website answered my questions and I will be able to save several hundred dollars, which will go into establishing MY business, not growing someone else’s!
Hey John, thanks so much! I’m happy to hear we were able to save you hundreds of dollars :)
This is the best!!! Concise and to the point… and Free too!!! I love it!! Thank you so much!
Hello Matt, thank you very much for company registration guidance, i followed your recommendation accordingly and below are the document Northwest registered agent are going to provide me
Online Federal Tax ID w/SSN filing
Registered Agent Service in Michigan
Expedited Michigan Form a Company filing
How To Start An LLC – Deluxe Package bundle
Is there another document required for my company before i stat working on website and company logos etc ?
Hi Peter, you’re very welcome. You should be good to go :)
This was definitely some beneficial information. I bookmarked this page for future reference. Thank you so much!!
Hi Karynthia, thank you for the compliment! We are glad you found our lessons helpful. Comments like yours makes all our hard work worth it :) Thanks again.
I’m so thankful to have stumbled onto your site! You not only saved me money, but you saved me money. Did I mention that you saved me money?!?! Seriously though, thank you so very much for putting this information out there! Starting up a new business can be so expensive and you allowed me to put that extra $300 to $400 I just saved into much better use! I’m sincerely grateful for your help!
~Shawna
Hey Shawna! Thanks for such a lovely comment! I’m glad to hear we were able to help you form your LLC and that you got to keep those dollars in your pocket ;)
Question. the person that file for the LLC do that mean they’re the owner of the business or company?
Nope. I believe you’re referring to the signature at the bottom of page 1 of the Michigan LLC Articles of Organization. That role is known as the LLC Organizer. An LLC Organizer may be an LLC Member (owner), but they don’t automatically become an LLC Member by organizing the LLC.
Thank you so much! You answered all my questions and got me headed in the right direction! By far the best LLC information source that I found after well over an hour on the internet! Thanks again!
Hey Tammy! Thanks for your awesome comment! It means a lot!! :)
Hello:
Informative. Exhaustively. Well done.
Best.
Thanks Sher!
If I buy two income properties outside of Michigan what tax will I pay in MI. I am a MI resident but live in Scottsdale AZ, can I form a single member LLC and have everything sent to my AZ address or must I have an address in MI?
If you’re forming an LLC in Michigan, you’ll need a Registered Agent (Article IV) with an address in Michigan. You can’t use a Arizona address here. Regarding taxes, we cannot answer this as taxes vary so widely among businesses. You’ll need to speak with an accountant regarding your tax obligations.
Great step by step guide! This was very helpful. Tip! Please update your LARA links since all of them seem to be unlisted since the LARA update not too long ago. Other than that, fantastic work! Thanks again!
Matt, thanks for the heads up! LARA has made a series of changes, so the links have changed a few times over now ;) We just updated the page though… everything is correct now. Thanks for your note, and thanks for the feedback!
Hi Matt,
If I designate myself as the resident agent of my LLC, should I file a registration of agent document to Michigan Department of Licensing and Regulatory Affairs? Thanks.
Hi Ling, no, you don’t need to submit that form if you’re acting as the Registered Agent for your LLC. Hope that helps.
Just an update, it got approved. Thank you for your help!!
Kay, that’s great news!! Congratulations :) And you’re very welcome!
Thank you so much for this info! I submitted my AOO but I didn’t write “perpetual” for the duration and believe I may get rejected. Will I have to pay the filing fee again to resubmit if I get rejected? (Michigan)
Hi Kay, if you look at Article 3 of the Articles of Organization, it actually says “The duration of the limited liability company if other than perpetual is”… meaning, you only need to enter something if you DON’T want your LLC to have a perpetual existence. So, by leaving it blank, you essentially told the state to give your LLC a perpetual existence. You should be all good!
Thank you for your reply! That was my line of thinking too but I was looking at Michigan’s “rejected filings registry” and so many of them were rejected for leaving Article 3 blank so I wasn’t sure :/
Hi Matt,
Does the Operating Agreement legally establish “member” or “managing member” designation for signing contracts.
If “managing member” is used would members name be designated instead of “all of its members” in the “Members Provision – Management” (Michigan LLC).
Thank you for providing this great site and valuable information.
Hi Ron, if your LLC will be member-managed, then using the designation “Member” or “Managing Member” will work. Please see this article: LLC Management & LLC Officer Titles.
Without question, the best site assistant we have located online! Streamline and easy to follow directions & links! We’ll make sure to spread the word!
William, what a great comment to receive :) We always appreciate the love and thank you for spreading the word!