LLC Cost in Michigan
Last Updated: By TRUiC Team
Michigan LLCs are relatively inexpensive — especially when you consider that an LLC can protect your personal assets and help grow your business. That’s why forming an LLC is the best choice for most small businesses.
The cost to form an LLC in Michigan is $50. This covers the primary cost of officially registering your LLC with the state.
Read our LLC Cost in Michigan guide below to learn more about LLC costs and other fees associated with all Michigan businesses.
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Northwest ($29 plus state fees)
How Much Is an LLC in Michigan?
Michigan LLC Filing Fee: $50
To form an LLC in Michigan, you'll need to file the Articles of Organization (Form 700) with the Department of Licensing and Regulatory Affairs. The Michigan Department of Licensing and Regulatory Affairs charges a $50 fee to process and record this document online, by mail, or in person.
You can complete this process yourself with our How to Start an LLC guide or use an LLC formation service.
Registered Agent Fee
Every Michigan LLC must appoint a resident agent, known as a registered agent in most states. Your Michigan resident agent must be a resident of Michigan and must be available to receive service of process during normal business hours at a designated street address.
You can be your own resident agent in Michigan, or you can use a registered agent service for a minimal cost.
Recommended: Get free registered agent services for one year when you form an LLC with Northwest ($29 plus state fees).
Michigan Annual Report Fee: $25
Michigan requires LLCs to file an annual report with the Department of Licensing and Regulatory Affairs each year. The cost to file this document is $25.
The annual report is due by February 15 of each year. If you miss this deadline, the penalty is an additional $50.
Cost to Form a Foreign LLC in Michigan: $50
LLCs registered in another state that want to expand into the state of Michigan must register as a foreign LLC in Michigan.
The cost for registering a Michigan foreign LLC is $50. You can register a foreign LLC in Michigan by filing an Application for Certificate of Authority to Transact Business in Michigan (Form 760).
Business Licenses and Permits
Your business might need federal, state, and local permits/licenses to legally operate in Michigan, depending on your industry and geographical location. This is true whether you form an LLC or any other type of business structure.
Learn more about state and local licensing in our Michigan business license guide.
Other Michigan Business Filing Fees
There are fees associated with other, optional business filings in Michigan.
"Doing Business As" (DBA) Name
When an LLC is registered with the state, the LLC’s name is also officially registered. Some business owners choose to also file for a DBA name, known as an assumed name in Michigan.
You can file an Assumed Name Certificate with the Michigan Department of Licensing and Regulatory Affairs and pay the $25 filing fee to create a name other than your legal LLC business name.
Learn more in our Michigan DBA guide.
Certified Document Copies
You can get certified copies of your Michigan business documents by ordering through LARA and paying $16 for up to seven pages and $1 per page after that.
Certificate of Status
Also known as a Michigan Certificate of Good Standing, you can obtain this document by ordering through LARA and paying the $10 fee. A Certificate of Good Standing is often required by banks and lenders.
How to Start an LLC in Michigan
Forming an LLC yourself is easy; just follow the five steps below.
Five Basic Steps to Start an LLC in Michigan
Step 1: Name Your Michigan LLC
Step 2: Choose a Resident Agent
Step 3: File Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 1: Name Your Michigan LLC
When you name your Michigan LLC, you’ll need to choose a name that:
- Is available for use in the state of Michigan
- Meets Michigan naming requirements
- Is available as a web domain
Check web domain (URL) availability with GoDaddy:
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Not sure what to name your business? Check out our free LLC name generator.
Step 2: Choose a Registered Agent
Michigan LLCs are required to appoint a registered agent to receive service of process. Business owners can hire a registered agent service or appoint any Michigan resident that is 18 years or older and is available during normal business hours at a specified address to receive service of process.
Recommended: Northwest offers one full year of registered agent services with their $29 (plus state fees) LLC formation package.
Step 3: File Michigan Articles of Organization
To form an LLC in Michigan, you must file Articles of Organization with the Department of Licensing and Regulatory Affairs. This can be done online with or by filing Form 700 by mail or in person.
For a closer look at the filing process, check out our Michigan Articles of Organization guide.
Step 4: Create an LLC Operating Agreement
Operating agreements in Michigan are not required for Michigan LLCs, but it’s a good practice to have one.
An operating agreement outlines the ownership and operating procedures of an LLC, ensuring that all members are on the same page and reducing the risk of conflict down the line.
Learn more in our Michigan LLC Operating Agreement guide.
Step 5: Get an EIN
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. Think of an EIN as a Social Security number for your LLC.
To learn how to get an EIN for free, visit our How to Get an EIN Number guide.
LLC Cost in Michigan FAQ
What is the cheapest way to start an LLC in Michigan?
The cheapest way to start an LLC in Michigan is to handle the registration process individually. In order to do this, you will need to follow these steps:
- Name your LLC
- Choose a registered agent: This can be a registered agent service or an individual.
- File the Michigan Articles of Organization: The filing fee for this is $50 and can be done online, by mail, or in person.
- Create an LLC operating agreement: This is usually not a legal requirement, but it is highly recommended.
- Get an EIN: This is basically your business’s Social Security number (SSN).
How much does an LLC cost per year in Michigan?
The annual cost for an LLC in Michigan is $25, which is the cost to file the annual report.
For a more in-depth analysis, see our How Much Does an LLC Cost? article.
How much does an LLC license cost in Michigan?
An LLC is not a business license, but a business entity. Forming an LLC in Michigan includes a filing fee of $50. Annual report fees are $25 per year.
You may be required to pay additional fees if you choose to pay for a registered agent service, an LLC formation service, or an LLC attorney.
See our How to Start an LLC in Michigan for more information on registering your business as an LLC.
Do LLCs pay taxes in Michigan?
Yes, LLCs are a “pass-through” tax entity. This means that the LLCs profits are “passed through” directly to its owner(s), who then pay income taxes independently.
This is advantageous compared to a corporation’s tax structure because it means that LLC members are not taxed twice.
Having said that, readers should keep in mind that LLCs are very flexible when it comes to how they can be taxed, and — depending on the specifics — they can choose to be taxed as a pass-through entity, a C corp, and an S corp.
For more information, see our How Is an LLC Taxed guide.
What are the tax benefits of an LLC?
The tax benefits of an LLC will depend on how you choose to be taxed, as well as on whether you are operating as a single or multi-member LLC.
Generally speaking, LLCs can choose to be taxed in several different ways, including:
- As a sole proprietorship or general partnership
- As a C corporation
- As an S corporation
See our Single-Member LLC Taxes guide for a detailed overview of the tax benefits of having an LLC as a small business.
Do I need to open a business bank account for my LLC?
Even though you do not necessarily “need” to open a bank account for your LLC, this is generally highly recommended for several reasons.
For one, having a separate bank account can allow you to maintain your LLC’s corporate veil — meaning that you will not risk losing your limited personal liability under the law. A business bank account also offers financial benefits, including the ability to build business credit more quickly and access to larger business loans.
Interested in opening a business bank account? See our review of the best banks for startups in 2023.