Limited liability companies (LLCs) in Michigan are affordable and easy to form. And as with other states, the State of Michigan has some unique, state-specific requirements.
Interested parties must register with the Michigan Department of Licensing and Regulatory Affairs, Bureau of Commercial Services, by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.
The specifications required of Michigan LLC are as follows:
Registration. Registrants must file Articles of Organization with the Department of Licensing and Regulatory Affairs. The articles must include pertinent information such as:
- LLC name
- Effective date, if other than date filed
- Purpose of LLC
- Registered agent’s name and address
- Organizer’s name and dated signature
- Contact person’s name and phone number
All documents submitted must be accompanied by the payment for the filing fee.
Forms and fees. LLC registrants are required to file Articles of Organization accompanied by the necessary filing fee of $50. Expedited processing services are available for the following additional fees: 24-hour processing for $50, same-day processing for $100, two-hour processing for $500 and one-hour processing for $1000. These fees can change, check with the Bureau of Commercial Services for the most current fees.
Timeline. The usual processing time for LLC documents and filings is between three to five working days. Expedited services are available.
Naming requirements. LLC naming requirements can be confusing. However, the easiest way to make sure that your LLC name will be approved is to ensure that it is distinguishable from other LLCs. Most states have a list of specific words that must be included in the name of your LLC. You may opt to have a preferred name checked for availability before filing your LLC formation documents with the Department of Licensing and Regulatory Affairs.
Formation requirements. To form an LLC, a registrant must first file Articles of Organization with the Department of Licensing and Regulatory Affairs.
An LLC with more than one member is also strongly advised to have a limited liability company operating agreement among its members.
Should your LLC offer professional services, you may have to obtain certain licenses and permits from the state’s professional licensing boards.
Starting an LLC in Michigan
Before you begin the registration process for an LLC in Michigan, it’s important to know what an LLC is and whether or not it is a viable business structure for your company, so be certain to read up on the definition and benefits of an LLC.
These steps will guide you through the LLC registration process with the Michigan Department of Licensing and Regulatory Affairs:
1. Decide on a name for your business. You can choose any name for your LLC as long as it ends with “Limited Liability Company” or any variation of its abbreviation—e.g., LLC, L.L.C., LC or L.C.
A name may be reserved for up to six months. You must file a name reservation application with the Department of Licensing and Regulatory Affairs. All requests must be accompanied by athe $25 filing fee that is about $25. Be sure to include the name to be reserved, the entity type and the applicant’s name, title, address and dated signature.
2. Assign an agent for service of process. Registered agents are individuals or corporations authorized to do business in the state and which have permanent addresses in Michigan. Registered agents accept legal documents on behalf of the LLC and make sure its members are notified.
3. Get an Employer Identification Number (EIN) from the IRS. If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.
4. Create an operating agreement. Although LLCs in Michigan are not required to have a limited liability company operating agreement, it is wise to have one in place with other members should your LLC have more than one member. The State of Michigan recognizes limited liability company operating agreements as governing documents.
5. Familiarize yourself with the LLC’s continuing legal obligations, specifically annual statements. Statements are filed with the Department of Licensing and Regulatory Affairs on or before February 15 every year. LLCs formed after September 30 are not required to file their initial statement until February 15 of the year following that in which the LLC was formed.
Statements may be filed online or by mail and must be accompanied by athe $25 filing fee that is about $25. Registered agents will receive notification in the mail form the Department of Licensing and Regulatory Affairs reminding the LLC of due statements. Failure to file a statement will place the LLC in bad standing as per state law.
Make sure that your LLC, should it offer professional services, meets state legal requirements.
Additional continuing legal obligations may vary with each state. These could be, but are not limited to, state taxes, annual or biennial reports and so on.
Filing an LLC and Fees
Following are the forms and fees that are required when starting an LLC in Michigan:
1. Forms. First, you need to complete and submit Articles of Organization to the Department of Licensing and Regulatory Affairs. All documents submitted must be accompanied with the payment for the necessary filing fee.
2. Fees. The filing fee for Articles of Organization is $50. This must be paid upon submission of the documents to the Department of Licensing and Regulatory Affairs. Fees can change, check with the Bureau of Commercial Services for the most recent fees.
3. Limited liability company operating agreement. Although the LLC operating agreement will not be submitted to the Department of Licensing and Regulatory Affairs, it is a good idea to have one in place for LLCs with more than one member. This agreement should be kept on file by the registered agent.
4. Taxes. LLCs in Michigan are treated as corporations, limited liability partnerships or single-member LLCs and are subject to federal income tax classifications. Depending on the type of taxation you opt to have for your LLC, you will have different federal tax responsibilities.
You should always make sure to acquaint yourself with the state laws regarding taxation. Your LLC may be subject to other taxes depending on the kind of services it offers.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.