Free LLC for Veterans in Michigan

Home » Michigan LLC » Free LLC for Veterans in Michigan

Michigan LLCs are free for Veterans

Dear Veteran,

Thank you for your service!

And good news, Michigan LLCs became free for Veterans after House Bill 4399 was passed in 2015.

Not only is it free to form your Michigan LLC, but it’s also free to file your LLC Annual Report (aka Annual Statement).

You just need to show proof that you’re a Veteran and make a request to have your fees waived.

Note: Veterans can request a fee waiver on any form filed with the Secretary of State. On this page, we will discuss the fee waiver request for the Michigan Articles of Organization and Michigan Annual Report.

Who qualifies for the fee waiver?

The Michigan Veterans and Members of Armed Forces Act, Section 35.61 defines a Veteran as someone:

…who served in the United States Armed Forces, including the reserve components, and was discharged or released under conditions other than dishonorable…

In simpler terms, as long as you were not dishonorably discharged, you can qualify for the Michigan LLC fee waivers.

What are the requirements to have my LLC fees waived?

There are 3 requirements:

  1. Proof of military discharge other than dishonorable
  2. 51% or more of the LLC is owned by Veterans (as per Michigan LLC Act: Section 450.5101)
  3. Affidavit of Veteran Ownership

If you have all three of the above, you don’t have to pay for:

  • the Michigan LLC filing fee (normally $50)
  • the Michigan LLC Annual Statement fee (normally $25 per year)

How do I provide proof of Veteran status?

Veterans usually submit one of these items as proof of status:

  • Michigan Driver’s License (or ID card) with Veteran designation in red and on the front of your license
  • DD-214 (any copy except Copy 1)
  • VA Veteran Health ID Card

You’ll need to make a copy of your ID or document to attach to the Affidavit (explained below).

Other acceptable forms of proof can be found here:
Michigan.gov: Waiver of fees for veterans

Notes:

Examples of Veteran Majority Ownership

The Veteran (or Veterans) who own your LLC must own 51% or more to qualify for the fee waivers.

Examples:

Bucky is a Veteran, and owns a Single-Member LLC called Arm Upgrades LLC. Because Bucky owns 100% of the business, Arm Upgrades LLC qualifies for the fee waivers.

Peggy, Steve, and Roger own a Multi-Member LLC called Shield and Song LLC. Peggy owns 30%, Steve also owns 30%, and Roger owns the remaining 40%. Peggy and Steve are Veterans, but Roger is not. Because Peggy and Steve together own a majority (60%), Shield and Song LLC qualifies for the fee waivers.

Sam and Sarah own Crab Boat of Dreams LLC. Sam is a Veteran, and owns 50%. Sarah is not a Veteran, and she owns 50%. Because Sam does not own a majority, Crab Boat of Dreams LLC doesn’t qualify for the fee waivers. In this case, Sam would need to own 51% and Sarah would need to own 49% to qualify.

Affidavit of Membership Interest being held by Veterans

What is an Affidavit? An Affidavit is a signed, written statement, sometimes signed under oath.

The Michigan Secretary of State requires you to submit an Affidavit to request the fee waiver. Your Affidavit must state that a Veteran (or Veterans) owns 51% or more of the LLC.

The Veteran(s) just needs to sign the Affidavit. It doesn’t need to be notarized or signed under oath.

Here’s a free PDF you can download and use:

How do I complete the Affidavit?

  • Enter your LLC name on the first line.
  • Enter the full name and ownership percentage of each Veteran.
    • We have included several lines in case you have multiple Veterans to list.
  • Enter the name of the form (like “Articles of Organization” or “Annual Statement”).
  • Enter the amount of the fee (Secretary of State Fee List).
    • List $50 for Articles of Organization
    • List $25 for Annual Statement

At the bottom: each person must sign, print their name, and enter the date.

Notes:

  • Don’t list any other Members of your LLC who aren’t Veterans on this form.
    • This means Veteran ownership percentages don’t have to total 100%.
  • If you have a Single-Member LLC, enter your name and 100% on the first line and leave the rest blank.

How do I request a Veteran fee waiver for my Michigan LLC?

Follow the simple steps below.

Articles of Organization:

  1. Complete your Affidavit of Veteran Ownership.
    • Enter Articles of Organization and $50 on the blank lines.
  2. Include a copy of your proof of Veteran status.
  3. Mail your Affidavit and proof of status along with your Articles of Organization.

For step-by-step instructions on how to complete the Articles of Organization, please see this page: Michigan LLC: Articles of Organization.

Important note: You must file the Articles of Organization by mail in order to request the fee waiver. You can’t file it online.

Annual Statement:

  1. Complete your Affidavit of Veteran Ownership.
    • Enter Annual Statement and $25 on the blank lines.
  2. Include a copy of your proof of Veteran status.
  3. Mail your Affidavit and proof along with your Annual Statement.

For step-by-step instructions on how to file an LLC Annual Statement, please see this page: Michigan LLC: Annual Statement.

Important note: You must file the Annual Statement by mail in order to request the fee waiver. You can’t file it online.

What Other Forms Can I File for Free?

Veterans can request a fee waiver on any form filed with the Secretary of State.

For a list of all LLC forms, please see: Michigan Secretary of State: LLC Forms.

Michigan Secretary of State Contact Info

If you have any questions about the Veteran fee waiver, you can contact the Corporations Division at the Michigan Department Licensing and Regulatory Affairs.

Their phone number is 517-241-6470. Their hours are Monday through Friday, from 8am to 5pm Eastern Time.

Can Veterans form a regular LLC instead?

Yes, Veterans don’t have to form a Veteran LLC. Instead, they can just form a regular Michigan LLC and pay the $50 fee.

You don’t have to file anything extra when forming a regular LLC.

Matt Horwitz


Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
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.

Leave a comment or question

 Email me when I get a reply.

×