Thinking about forming an LLC in Michigan but feeling overwhelmed by the process? Don’t worry, we’ve got you covered. Many local entrepreneurs struggle with understanding the requirements and paperwork needed to protect their business properly.
This guide breaks down the essential steps to form an LLC in Michigan from choosing a name to staying compliant with state requirements.
Steps to Starting an LLC in Michigan
For those short on time, here’s what you need to know:
- Choose a unique business name that includes “LLC” or “Limited Liability Company”
- Select a resident agent to receive legal documents
- File your Articles of Organization with the state (just $50)
- Create an operating agreement for your business
- Get your federal tax ID number (EIN)
Recommended Service
If you’re ready to form your Michigan LLC, we recommend using a trusted formation service. This can save you time, prevent common filing errors, and let you focus on growing your business.
Form With Northwest ($29+State Fees)
Step 1: Name Your Michigan LLC
Your LLC name is the first impression customers will have of your business, but it also needs to meet state requirements:
- Must include “Limited Liability Company” or “LLC”
- Must be unique among Michigan businesses
- Cannot include words like “Corporation” or “Inc.”
- Cannot use restricted words (banking, insurance, etc.) without approval
To check availability, use the Michigan Business Entity Search tool. If you’ve found the perfect name but aren’t ready to form your LLC yet, you can reserve it for six months by filing an Application for Reservation of Name with the state for $25.
Important Tip: Now is a great time to make sure a matching domain name is available by conducting a domain name search. This will be helpful when you decide to build your business website.
Step 2: Pick a Michigan Resident Agent
Every Michigan LLC needs a resident agent (called a registered agent in most states).
This person or company:
- Receives legal documents and official notices for your business
- Must have a physical Michigan address (not a P.O. box)
- Must be available during normal business hours
While you can serve as your own resident agent, we don’t recommend it. Here’s why:
- Your personal address becomes public record
- You might miss important legal notices while away from your office
Get Free Registered Agent Services
Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge.
Get Started (29+State Fees)
Step 3: Submit Your LLC’s Articles of Organization
This is the official step that creates your LLC in Michigan. You’ll need to:
- File Articles of Organization with Michigan’s Department of Licensing and Regulatory Affairs
- Submit online through the LARA Corporations Online Filing System or by mail
- Pay the $50 filing fee
Your filing must include:
- Your LLC’s name
- Business purpose
- Resident agent information
- Duration of the LLC (typically “perpetual”)
Need it faster? Expedited processing is available for an additional fee:
- 24-hour: $50
- Same-day: $100
- Two-hour: $500
- One-hour: $1,000
Or, you can opt to have a professional service, like Northwest, register your LLC for you.
Step 4: Create an Operating Agreement
While Michigan doesn’t legally require an operating agreement, having one is strongly recommended. A solid operating agreement helps prevent future disputes and strengthens your LLC’s legal protection of personal assets.
An operating agreement typically includes:
- Ownership percentages
- Management structure
- Outlines about how decisions will be made
- Details profit distribution
- Procedures for adding or removing members
Important Tip: You don’t need to pay for an expensive template. Many free resources (like this one) are available online to help you draft your own operating agreement.
Step 5: Get an EIN
An Employer Identification Number (EIN) is your business’s tax ID number. You can think of this as a social security number for your business. You’ll need it to:
- Open a business bank account
- Hire employees
- File taxes properly
- Apply for business licenses
Getting an EIN is free through the IRS website and typically takes just minutes.
Maintaining Your Michigan LLC
Once formed, here’s how you ensure your LLC stays compliant with state requirements:
- File an Annual Statement by February 15 each year
- Pay the $25 annual filing fee
- Keep your resident agent information current
- Maintain separation between personal and business finances
Important Note: If your LLC was formed after September 30, you won’t need to file an Annual Statement until the second February 15.
Next Steps After Forming Your LLC
Licenses and Permits
Michigan doesn’t require businesses to obtain a general business license. However, you may be required to obtain these licenses or permits depending on your industry or location:
State-level: Sales tax license or seller’s permit (if selling products), professional licenses, or environmental permits depending on your industry.
Local-level: Check with your city or township clerk about local business licenses, zoning permits, or health department approvals.
Federal-level: Certain industries like food service, transportation, or broadcasting need federal licenses.
Banking and Insurance
To maintain the separation of your personal and business assets, you will need to open a separate business bank account. To open an account at most banks, you will need to provide the following information:
- Your EIN
- Business formation documents
- Government-issued ID
You will also need business insurance coverage such as workers’ compensation and general liability coverage to protect yourself and your business. Get a free quote with NEXT insurance today.
Funding Your Business
Many business owners choose to bootstrap their businesses or borrow money from friends and family to fund their businesses at the start. If you’re looking for additional funding sources for your LLC, here are some options to consider:
- Local bank loans
- Small Business Administration (SBA) loans
- Michigan Economic Development Corporation programs
- Community-based funding initiatives
More Michigan Business Resources
8123 Main St Suite 200 Dexter, MI 48130
