How Much Does It Cost to Start an LLC in Michigan?

Legal business formation — and keeping your business in good standing — involves some necessary expenses and investment on your part. Some of these costs are payable to the MI Department of Licensing and Regulatory Affairs, while others are collected by the federal or state governments. We’ve summarized some of the most common requirements and fees here.

Note that Michigan permit fees and business licenses may need to be paid for when you first form your business, on an ongoing basis or on an ad hoc basis. Learn more below.

Initial Michigan LLC Fees

When you first form your business in Michigan, you’ll need to file as an LLC with the MI Department of Licensing and Regulatory Affairs and pay a filing fee. Here are the current fees and filing times:

State Fee State Filing Time Expedited Filing Time
$50 15 Weeks 8 Business Days

When you form your LLC through Incfile, we charge you this fee and automatically forward it to the MI Department of Licensing and Regulatory Affairs when we file your formation paperwork.

Incfile can file your formation paperwork on your behalf for free.

Just pay the required state fee.

Michigan allows you to pay a rush fee to form your LLC more quickly.

Employer Identification Number

Every Michigan LLC should have a unique Employer Identification Number (EIN). These are provided by the Internal Revenue Service and you'll use it when filing taxes, opening a business bank account and paying employees. You can get an EIN from us and we'll do the paperwork for you, or you can go through the IRS process yourself.

Foreign LLCs

When you want to do business in a state other than the one where your business is based, you must create a Foreign LLC.

Michigan Foreign LLC Registration

Before you can bring an arm of your business from another state into Michigan, you must request Michigan Foreign Qualification. This means the state gives you permission to conduct business there.

To request registration of a Michigan Foreign LLC, you must complete an Application for Certificate of Authority to Transact Business in Michigan and pay a $50 filing fee. The state may have additional requirements, so contact the MI Department of Licensing and Regulatory Affairs for more information.

Foreign Qualification to Operate in Another State

If you plan to expand your Michigan LLC into another state, you’ll first need Foreign Qualification or a Certificate of Authority from that state. This is necessary if you'll have a physical presence, employees or banking in that state.

You'll likely be required to complete an application and pay a filing fee. Each state has its own requirements, so compare state filing times and state filing fees before you begin the process. Also, contact the state government entity that administers business (usually the Secretary of State) to confirm their requirements and get specific instructions.

If you need assistance, Incfile provides a complete Foreign Qualification service for all states.

Annual Report Requirements for Michigan

Most states — including Michigan — require businesses to file an annual (or other periodic) report with the government entity that administers business formation and management. In many states, that's the Secretary of State. In this case, it's the MI Department of Licensing and Regulatory Affairs, and you file an Annual Statement.

When you file your annual statement, you’ll need to pay a fee of $25. Here are the annual filing requirements for Michigan:

Annual Report

Frequency

Annually

Due

February 15th

Note

LLCs registered after September 30th of the preceding year are exempt from filing the report in the subsequent year.

Filling Fee

$25

Incfile can also complete and file your Michigan annual statement on your behalf.

Michigan Business Licenses and Permits

As a business owner, you're responsible for making sure you have the necessary local, state or federal business licenses you need to operate your LLC. Some of these fees only need to be paid once, while others are ongoing charges.

Permits and licenses vary based on:

1

The type of business you run (e.g., healthcare providers must meet HIPAA requirements)

2

The industry your LLC operates in (e.g., restaurants need health permits)

3

The location of your LLC (county or city) (e.g., a license to conduct business in the city of Kalamazoo)

Be aware that operating your business without the required permits or licenses can expose you to risks and fines from local, state and federal governments.

You can research all the permits and licenses you need or you can let us do it for you through our Business License Research Package, which includes:

  • The applications you'll have to file with state, regional and federal licensing authorities
  • A complete report on all the licenses, permits and tax registrations your LLC will need

Operating Agreements

You're not required to have a Michigan LLC Operating Agreement.

This document covers how the business will be run, how managers and members are chosen, rights and duties of members and several other key facets of your business.

An Operating Agreement can be extremely helpful in making sure you’re organized and prepared for any future events that may affect your business.

Incfile can draft a general Operating Agreement template when you form your business.

You can then make changes to the template based on your preferences and requirements.

Other Potential Michigan LLC Fees or Requirements

You may need to pay and meet several other fees and requirements during the life of your LLC. These ad hoc fees are only payable under certain circumstances, which are listed below.

Obtaining an Assumed Name or DBA

If you want to establish a Michigan DBA (trade name), you can file a Certificate of Assumed Name form with the MI Department of Licensing and Regulatory Affairs. You’ll need to pay a filing fee of $25.

Incfile can file your Trade Name or DBA forms on your behalf.

Changing the Registered Agent

Your LLC needs a Michigan Registered Agent, which must be appointed when you file your Articles of Organization. You can also switch to a new Resident Agent later by filing a Certificate of Change of Registered Office and/or Change of Resident Agent form and paying a fee of $5.

Have Incfile serve as your Registered Agent.

It’s free for the first year if you form your LLC with us and $119 a year after.

Reserving a Name for Your LLC

If you don’t want to form your LLC right away, you can reserve a business name for six months with the MI Department of Licensing and Regulatory Affairs by filling out an Application for Reservation of Name and paying a fee of $25. First, perform a Michigan business search and learn about business name rules to ensure you choose a name that meets state requirements.

Amending Certain Facts About Your LLC

Your business formation documents state certain facts about your Michigan business at the time it's formed. Over time, these facts may change. If they do, you'll need to file a Certificate of Amendment to the Articles of Organization form with the MI Department of Licensing and Regulatory Affairs and pay a $25 filing fee. You can do this yourself or have Incfile take care of it on your behalf.

You may want to file an Information Change form when you:

  • Add, remove or change an LLC member or manager
  • Alter the stated business activities of your LLC
  • Change the business address of your LLC

Getting a Michigan Certificate of Good Standing

Some organizations will request that you prove your LLC’s compliance with laws and tax requirements. If you need to prove you've met your commitments, you’ll need a Michigan Certificate of Good Standing from the MI Department of Licensing and Regulatory Affairs. You can obtain one by filing a Certificate of Restoration of Good Standing form and paying a fee of $50.

Note: Michigan refers to this as a "restoration" of good standing regardless of whether you've been in good standing before or not.

Incfile can obtain a Michigan Certificate of Good Standing on your behalf.

The fees listed above detail many of the charges a standard LLC will be required to pay in Michigan. In some unusual circumstances, there may be other one-off, periodic or ad hoc fees not listed above.

Of course, your LLC will also probably need to pay self-employment, payroll, federal, state and other taxes. More information about taxes can be found on the Michigan Business Taxes page.

FAQs About Michigan LLC Fees

What Happens to the State Fees I'm Charged When Forming My LLC?

We charge you this fee at cost and then pay the fee to the Department of Licensing and Regulatory Affairs on your behalf when forming your Michigan business.

Where Do I Get Business Licenses and Permits for My LLC?

It depends on various factors, including:

  • The type of business you run
  • Where your business is located
  • Governing bodies in your industry
  • Federal, state and local regulations

Many new businesses need a business license, and you may be required to obtain additional licenses and permits. Our Business License Research package can take the guesswork out of it for you and help you learn what your LLC needs to be compliant.

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