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Step 1) Choose the Right Business Structure to Incorporate in Michigan

Why Incorporate a BusinessBefore incorporating in Michigan, you must first choose a business structure to incorporate in.

Now, this first step is crucial for it sets a precedent on how the state is going to treat your business and impose taxes and the necessary requirements you need to comply. The business licenses you need to complete will also depend on the type of business structure you choose.

There are several structures to incorporate in. Before choosing, make sure to weigh your options and consider how it will benefit your business most and whether it addresses the specific requirements of your business. When starting a business in Michigan and choosing a business structure, you can refer to the links below.

Quick Links on How to Choose a Business Structure


Step 2) Use the Guide for Your Business Structure

Business Website

Once you have chosen the right structure, you can now proceed to incorporating your business.

Once you incorporate, this means that you are legally registered as a business entity operating under a specific structure (LLC, Corporation, Non-Profit). Learn how to incorporate in Michigan with the right guide for you:


To-Do After Incorporating in Michigan

Now that you have followed the steps above, you are officially a Michigan business owner. Here are 5 additional steps to help you start a successful business.

1) Complete all Incorporation Requirements

Write a Business PlanAfter you have incorporated your business in Michigan, this is just one half of the tasks you need to do.

In keeping with the requirements of starting a business in Michigan, you must retain the services of a Registered Agent, elect an initial set of directors and officers, obtain an Employer Identification Number, file the necessary tax obligations, complete all licensing requirements, among other tasks involved in incorporating your business.

Every startup entrepreneur is highly advised to take care of complying with all these requirements to ensure that you can begin business operations smoothly. The consequences when you fail to complete any one of these can range from penalties up to the suspension of your business operations.

Aside from the standard state requirements for incorporating a business, there are also non-standard documents that you have to create. Although not mandatory, documents such as a business plan, operating agreement, and corporate bylaws can make for a smoother operating business that is geared for long-term success.


2) Open a Business Bank Account

Best Business Bank AccountBy opening a separate business bank account for your business, your personal and business finances will be seen as separate by the state of Michigan. This step is all about protecting your personal assets and it should not be take lightly!

There are many options available from Bank of America to Chase. For a quick outline of the best place to open a business bank account, see this quick review.


3) Build a Business Website

Build a Business WebsiteIf you want your business to be taken seriously and build trust with potential customers, build a website that explains what you offer. With a free tool like WordPress, you can build a professional and customizable website without the need to hire a professional.

Recommended Resource: Check out this free guide to learn more about WordPress and how to get started.


4) After Incorporating your Business (Maintenance)

Continue LearningYour responsibility to the state as a business owner does not end after you have incorporated your business.

Rather, it is only the beginning. When your business is fully operational, you must keep tabs of your Michigan business tax obligations and pay on time to the governing agency. The same holds true for business licenses that you have to renew.

In addition, any changes made to your business should be informed to the state in case there are additional documents and licenses you need to complete. An annual report should also be submitted for every year that your business is in operations.

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