How to Form a Michigan LLC

To properly form and launch your LLC, you’ll want to think about:

• State requirements: Articles of Organization and resident (registered) agent
• Federal requirements: EIN and basic tax classification choices
• Local requirements: Licenses, permits, and zoning
• Ongoing compliance: Annual statements and license renewals
• Online presence: Domain, website, and professional email

In Michigan, you officially create an LLC by filing Articles of Organization with the Corporations Division of the Department of Licensing and Regulatory Affairs (LARA). The standard state filing fee is currently $50 for a Michigan LLC.

The Articles of Organization tell the state the basics about your company—its name, purpose, resident agent, and where it will receive official mail. Information you provide here becomes part of the public record.

MI Business Compliance can help you gather the required information and submit your Articles of Organization to LARA on your behalf, or you can file directly with the state if you prefer.

Michigan LLCs can generally be:

• Member-managed:
  All owners (members) are involved in day-to-day decisions and can sign contracts and manage operations. This is the most common structure for small businesses where the owners are actively involved.
   
• Manager-managed:
  One or more managers (who may be members or outside individuals) are appointed to handle daily operations and make binding decisions. This structure is often used when some owners are passive investors or when the group wants one or two people clearly in charge of management.
   

You’ll indicate your management structure when forming your LLC and should also reflect it in your internal Operating Agreement.

Michigan requires every LLC to maintain a resident agent and a registered office within the state.

A resident agent is:

• A person or business with a physical Michigan street address (no P.O. boxes), and
• Available during normal business hours to receive legal notices and official state documents for your company.
   

You (or another owner) can serve as the resident agent if you meet those requirements. Many companies, however, choose to use a professional resident/registered agent service so their home address isn’t on public record and so someone is always available during business hours.

How MI Business Compliance can help:

• Serve as your Michigan resident/registered agent, providing a professional address
• Receive and promptly forward legal and state correspondence
• Store documents and notices in your secure client portal
   

Naming your company is the fun part—but there are a few rules:

• Your name must be available and not already in use by another entity on file with Michigan.
• It must include a designator such as “LLC,” “L.L.C.,” or “Limited Liability Company.”
• It can’t suggest that you’re doing something you’re not legally allowed to do (for example, implying you’re a bank, insurer, or law firm if you’re not properly licensed).
   

Before you get too attached to a name, it’s smart to:

• Search Michigan’s online business entity database for name availability
• Check for potential trademarks at the federal level
• Consider whether the matching domain name is available
   

MI Business Compliance can help you verify availability in Michigan and confirm that your chosen name fits state requirements.

When you form your LLC, you’ll see references to different addresses:

• Principal office / business address:
  The main physical location where your LLC operates or keeps its records. This must be a street address (no P.O. box).
   
• Mailing address:
  Where you want to receive mail. This can be your principal address, a P.O. box, or another mailing address.
   

If you’re running a home-based business and would rather not put your home address in public records, working with a service like MI Business Compliance can help you keep some information off the state’s public-facing forms where allowed.

After your LLC is formed with the state, you’ll usually need to take care of a few federal steps.

Most LLCs should obtain an Employer Identification Number (EIN) from the IRS. This is a unique number used for:

• Opening business bank accounts
• Hiring employees
• Filing certain federal and state tax returns
   

You can apply for an EIN directly with the IRS for free by submitting Form SS-4 or using the IRS’s online EIN application.

Even single-member LLCs often choose to get an EIN so they’re not constantly using their personal Social Security number for business-related activities.

By default, the IRS treats:

• A single-member LLC as a disregarded entity (taxed like a sole proprietorship)
   
• A multi-member LLC as a partnership
   

In both cases, income “passes through” to the owners’ personal tax returns.

LLCs can also elect to be taxed as an S corporation if certain requirements are met, which may create tax savings at certain income levels. Whether that makes sense depends on things like your profits, how you pay yourself, and your overall tax situation.

It’s important to talk with a qualified tax professional or CPA before making an S-corp election.

Forming an LLC with the state doesn’t automatically give you permission to operate every type of business in every location. You may also need:

1. Local business license
   Many cities or townships require a general business license or registration. Check with your city, township, or county clerk’s office.
    
2. Zoning or land use approvals
   If you’re operating from a storefront, warehouse, or even your home, local zoning rules may apply. Confirm your proposed use is allowed at that address.
    
3. Sales tax registration (if applicable)
   If you’ll be selling taxable goods (and in some cases, taxable services), you may need to register for sales tax with the Michigan Department of Treasury.
    
4. Health, safety, and fire permits
   Restaurants, salons, fitness facilities, and other regulated businesses often need local health or fire inspections and approvals.
    
5. Professional licenses
   Certain occupations (healthcare, legal, financial services, trades, etc.) require specific state licenses. Always verify professional licensing requirements before you begin operating in a regulated field.
    

MI Business Compliance doesn’t issue licenses, but we can help you understand which agencies you may need to contact and keep key documents organized in your portal.

Once your Michigan LLC is formed, you’ll need to keep it in good standing with the state.

Michigan LLCs must file an annual statement with LARA and pay a $25 filing fee each year. The statement is generally due by February 15 following your first year of formation, with a few exceptions for entities formed late in the year.

If you miss filings for too long, your LLC can fall out of good standing or even be administratively dissolved.

How MI Business Compliance can help:

• Track your due dates
• Send reminders before statements are due
• File annual statements on your behalf
• Store confirmations and receipts in your client portal
   

Depending on your business, you may also need to:

• Renew local business licenses
• Maintain professional licenses
• Keep your resident agent and registered office information up to date
   

We can help you keep a checklist of your Michigan compliance obligations so you’re not surprised by a missed deadline.

After your LLC is set up, it’s smart to put a basic online presence in place:

• Domain name:
  Register a domain that matches or closely aligns with your business name.
• Business website:
  Even a simple one-page site with your name, services, and contact info helps customers verify you’re legitimate. 
• Professional email:
  Email addresses like info@yourbusiness.com or support@yourbusiness.com signal professionalism and help separate business from personal communication.
   

MI Business Compliance focuses on your entity and compliance, but we can coordinate with your web provider so your legal business details stay consistent in your online presence.

If you’d rather not spend your time reading statutes and filling out state forms, MI Business Compliance can:

• Prepare and file your Michigan LLC Articles of Organization
• Serve as your Michigan resident/registered agent
• Handle your annual statements and track due dates
• Provide Michigan & federal labor law posters for your workplace
• Store important documents in a secure online portal
   

You can always file directly with the State of Michigan yourself at the state’s standard fees. Our services are for owners who prefer a done-for-you option with reminders, tracking, and support.

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