How much does an LLC cost in Michigan?
It costs $50 to form an LLC in Michigan. This is a fee paid for the Michigan Articles of Organization.
You’ll file this form with the Michigan Department of Licensing and Regulatory Affairs (LARA). And once approved, your LLC will go into existence.
In addition to this LLC filing fee, there are other LLC costs to be aware of when forming a Michigan LLC.
Costs to forming a Michigan LLC
There is a $50 one-time state filing fee to form an LLC.
After that, there are also ongoing fees (like a $25 Annual Report fee), which we discuss below.
LLC Costs in Michigan
|Articles of Organization||$50|
|Registered Agent||$0 or $125 per year|
|Operating Agreement||Free on our website|
|EIN Number||Free from the IRS|
|Annual Report||$25 per year|
Michigan LLC Articles of Organization Filing Fee ($50)
The LLC formation cost in Michigan is $50. This is the state filing fee for a document called the Michigan Articles of Organization.
The Articles of Organization is filed with the Michigan Department of Licensing and Regulatory Affairs, Corporations Division. And once approved, this is what creates your business entity (your LLC).
The $50 fee is a one-time fee for the Articles of Organization. You don’t have to pay any monthly (or annual) state fees for Michigan LLC formation.
Note: LLCs are the most common business structure used in Michigan. They are the most popular business entity because they offer liability protection for the LLC Members (owners).
Michigan business name cost ($0)
Naming your Limited Liability Company doesn’t cost anything. The Michigan Secretary of State doesn’t require you to file an LLC Name Reservation or anything like that.
Your business name is approved (at no extra cost) when your Articles of Organization is approved by the state during the LLC formation process.
Check out our Michigan LLC Name page for instructions.
How much does a DBA cost? ($25)
A Fictitious Business Name (aka Assumed Name or DBA) is filed with the Michigan Department of Licensing and Regulatory Affairs. The fee is $25 to get a DBA for your LLC. But this is not a required Michigan LLC cost, because DBAs are optional.
Tip: You aren’t required to get a DBA for your LLC. It’s optional. Read our article for more information: Do I need a DBA?
Michigan Resident Agent Fee ($0 or $125/year)
A Resident Agent is one of the Michigan LLC requirements.
Michigan law requires that you designate a Resident Agent when forming your LLC. Luckily there is no additional filing fee when you name a Registered Agent on your LLC Articles of Organization.
A Michigan Resident Agent is a person or company who receives legal documents and state notices for your LLC. A Registered Agent needs a street address in the state and should generally be available during normal business hours.
Note: In Michigan, the official name is actually Resident Agent, however, the term Registered Agent is more commonly used. They both mean the same thing and we use these words interchangeably.
There is no additional cost if you will be your own Registered Agent, or have someone you know be your LLC’s Resident Agent.
However, you have the option of hiring a Registered Agent Service. This will cost you about $125 per year. But Registered Agent service companies offer other helpful business services and can protect your privacy.
Hiring a Registered Agent Service is a good idea if:
- You don’t have an address in the state (Michigan law requires a Resident Agent to have a physical address in the state)
- You want to keep your address off public record (depending on which company you hire, you may be able to use their address to keep your address private)
LLC Operating Agreement Fee ($0)
A Michigan LLC Operating Agreement is a written contract between the LLC Members. Operating Agreements include detailed information about LLC ownership, how the LLC is managed, and how profits are distributed.
Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement, keep it with their business records, and give a copy to each Member. It’s important for all Michigan LLCs to have Operating Agreements.
Most websites charge $50 – $200 for LLC Operating Agreements. But you can save money by writing your own Operating Agreement.
Here at LLC University®, we offer free LLC Operating Agreement templates for Member-managed and Manager-managed LLCs.
LLC EIN Number Fee ($0)
An EIN Number is also known as an Employer Identification Number (EIN) or a Federal Employer Identification Number (FEIN).
This number is used to file income taxes, to open an LLC bank account, and to hire employees (if applicable).
Although many websites charge a service fee to help you get an EIN for your LLC, it can actually be done for free.
You can obtain an EIN for your LLC from the Internal Revenue Service (IRS) at no cost. The online filing can be completed in a few minutes.
Michigan LLC Annual Report Fee ($25/year)
Michigan requires you to keep your LLC’s information up to date by filing an Annual Report (also called the Annual Statement in Michigan).
This keeps your LLC in good standing and in compliance with state law so it can continue operating. You simply confirm the information on the Annual Statement, file it with the Michigan Department of Licensing and Regulatory Affairs (LARA), and pay the Annual Report fee.
The Michigan LLC Annual Report costs $25 per year. This fee is paid every year for the life of your LLC, and this requirement applies to all Michigan LLCs.
Michigan Business Licenses and Permits Fees (varies)
Depending on where your LLC does business in Michigan and the industry you’re in, you may need to obtain business licenses and/or permits. For example, many businesses in Michigan need a sales and use tax license to collect sales and use tax on products sold directly to consumers.
The costs for your business license or permit will vary depending on location and industry, but usually the fees are not very high.
Some licenses and permits are issued at the state level by the Michigan Department of Licensing and Regulatory Affairs, and others are issued by a municipality (the city or county).
Please see our Michigan Business License page for more details: Michigan Business License.
Note: There are three subdivisions within Licensing and Regulatory Affairs that handle licensing: the Commercial Licensing Bureau, Occupational License Division, and the Bureau of Professional Licensing.
LLC Taxes (varies)
There are many different types of Michigan LLC taxes that small business owners must pay, so this annual cost varies widely.
Some of the taxes LLC owners pay include:
- Federal income tax
- State income tax
- Local income tax
- Business taxes
- Self employment taxes
- Sales tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
Your Michigan LLC taxes depend on your industry and amount of business activity, so we’re not able to provide an estimate. Every business is different, and your small business’ specific circumstance determines what taxes apply to your LLC.
Note: By default, a Single-Member LLC is taxed like a Sole Proprietorship. And a Multi-Member LLC is taxed like a Partnership.
Hiring an Accountant
How much your small business pays in taxes is best determined by working with a qualified accountant in Michigan.
Look for an accountant who works with small business owners. A business accountant can help you whether you have an LLC, want your LLC taxed as an S Corporation, or decide to operate as a Sole Proprietorship. But remember, only an LLC gives you the liability protection for your personal assets.
The amount you’ll pay your accountant will vary. However, most accountants will charge between $300 per year for a simpler tax return, or up to $900 for more detailed filings.
Note: We recommend speaking with a few accountants in Michigan to make sure they can help you meet all your federal, state, and local tax obligations. For tips on finding an accountant, please see our guide on How to Find an Accountant.
Michigan Department of Licensing and Regulatory Affairs (LARA)
If you have any questions about Michigan LLC fees, you can contact the Michigan Corporations Division at 517-241-6470. Their hours are Monday through Friday, from 8am to 5pm Eastern Time.
Michigan LLC Costs FAQs
How much does an LLC cost per year in Michigan?
All Michigan LLCs need to pay $25 per year for the Annual Report (aka Annual Statement). These state fees are paid to LARA. And these are the only required annual state fees. You have to pay this to keep your LLC in good standing.
If you hired a Resident Agent service, you’ll have an annual fee to pay each year. This is usually about $125 per year.
Some LLCs may need a business license in Michigan. This depends on your industry and where your LLC is located. You’ll need to check with your municipality to see if there are any annual fees for the business license.
Do I need to hire an attorney to form an LLC?
No, you aren’t required to hire an attorney to form your LLC in Michigan. A small business owner can complete the LLC formation process on their own if they want to.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, uses unusual business structure, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC.
Should I hire an LLC formation service?
You aren’t required to hire an LLC formation service company to form your LLC in Michigan. You’re allowed to form your LLC yourself if you’d like.
However, if you want to save time and make sure your LLC is filed correctly, we recommend hiring Northwest ($39 + state fee).
Northwest Registered Agent has excellent customer service and they include Registered Agent services free for the 1st year. They also offer other services, like an Operating Agreement and filing your Annual Statement.
What’s the cheapest way to start a Limited Liability Company?
You can get a Michigan LLC cheaply by filing your LLC formation documents yourself. You’ll also save money by being your own Resident Agent and using our free Operating Agreement templates.
By forming your LLC yourself and being your own Resident Agent, you can save over $250.
Keep in mind, just because a certain state has cheap LLC fees doesn’t mean it’s a good idea to form your LLC there. In fact, there are usually disadvantages to forming an LLC out of state. Check out what’s the best state to form an LLC for more information.
How much does a Michigan business bank account cost?
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance. then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees. You can learn more about LLC bank accounts in our guide.
How much is a Foreign LLC in Michigan?
A Foreign LLC is an LLC formed in another state that must register (aka foreign qualify) in Michigan. This is because the LLC is doing business in both states.
The Michigan Foreign LLC cost is $50. The form to file is called the Certificate of Authority to Transact Business (Form 760).
You can download the Foreign LLC form from the state’s Foreign LLC page: Michigan Limited Liability Company Forms.
How long does it take for LLC approval in Michigan?
How long it takes to get an LLC approved in Michigan depends on how you file your Articles of Organization.
You can get an LLC in Michigan 10 business days if you file online. On the other hand, filing by mail takes 10 business days (plus mail time).
If you need your LLC faster, you can pay for expedited processing in the LLC formation process and get it in 24 hours or less.
For more info, please see: How long does it take to get an LLC in Michigan.
What are the steps to forming an LLC in Michigan?
Here are the steps to starting an LLC in Michigan:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Michigan Resident Agent
- File the Michigan Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need a business or sales tax license in Michigan