Located near the Great Lakes in the Midwestern U.S., Michigan and Detroit in particular have had a tough few years. That’s turning around now, though, as major cities are starting to revitalize and Michigan is again becoming an attractive place to start a business.
Although this state has become synonymous with the automobile industry, it is home to several other major sectors including technology, mining, aerospace, military manufacturing, furniture and food products. Michigan also has nearly 65,000 inland bodies of water and no resident is further than 85 miles from one of the Great Lakes. Any businesses that can take advantage of water sports, tourism and related areas will do well here.
If you want to start your own business in Michigan, one of the best ways to do so is by forming an LLC. Limited Liability Companies (LLCs) are a business entity designed for startups and small- and medium-sized businesses. Michigan makes forming an LLC easy and inexpensive. LLCs are great for small and medium businesses because they give you many of the protections and advantages of larger corporations — without all the rules, regulations and compliance issues common to larger business entities. Let’s start by looking at the advantages of forming a Michigan LLC.
Advantages of Forming an LLC in Michigan
Michigan LLCs have several benefits for business owners:
Start your Michigan LLC in Five Steps
STEP 1: Name Your Michigan LLC
STEP 2: Provide the Address for Your New Michigan LLC
A Michigan LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), where your office is located or any physical address of your preference — even outside of Michigan. It can also be a P.O. Box.
STEP 3: Assign a Registered Agent for Your Michigan LLC
Every Michigan LLC must have a “registered agent.” That could be you, the managing director, owner or a dedicated registered agent service. The registered agent in Michigan is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Michigan Department of Licensing and Regulatory Affairs. There are several benefits to using a Registered Agent service.
Your Registered Agent must have a physical street address in the state where you are forming the company. Some people establish companies outside of the state they live in and will use a service to provide the address. This should not be confused with your company's address, which is not a service the Registered Agent provides.
The Registered Agent address is listed on public records on the Department of Licensing and Regulatory Affairs website. If you do not want your own name and address to be registered, you should use a Registered Agent service.
The Registered Agent must be present or available during normal business hours (9 a.m. - 5 p.m. Monday - Friday) to receive any legal correspondence delivered since the type of documents delivered to the registered agent require a signature on delivery. Some people travel or are not always at their business location to receive these documents.
At Incfile, all of our packages include a Registered Agent service free for the first year and $119 per year thereafter. We also have a dashboard where you can log in and easily view any document your registered agent has received on your behalf.
STEP 4: You Need to File Articles of Organization With the Michigan Department of Licensing and Regulatory Affairs
Once you've gathered all the information together for your LLC, you’ll need to file formal documents with the Michigan Department of Licensing and Regulatory Affairs. Filing Articles of Organization creates your Michigan LLC. You can do this online, mail in a form or have Incfile do it on your behalf.
STEP 5: You Can Create a Michigan LLC Operating Agreement
Michigan LLCs aren’t required to have an operating agreement, but they are extremely useful for several reasons. Your operating agreement covers how the business will be run, how managers and members are chosen, rights and duties of members and several other key areas. Learn how to create your operating agreement. If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.
You can find lots more useful information on how to form an LLC here. It answers questions like:
Starting Your Michigan LLC: Useful Resources
Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps, such as filing the Articles of Organization on your behalf. Our basic package also provides a free Registered Agent service for the first year. If you're looking for help to start an LLC, our comprehensive services provide outstanding value.
|State Fee||State Filing Time||Expedited Filing Time|
|$50||15 Business Days||8 Business Days|
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.
Due: February 15th
Note: LLCs registered after September 30th of the preceding year are exempt from filing the report in the subsequent year.
Filing Fee: $25
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Prepare & File Articles Of Organization
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Personalized Operating Agreement
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