LLC Cost in Michigan – How Much to Pay for an LLC


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Perhaps you are hoping to form a Michigan LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Michigan.

Michigan LLC Cost of Filing

Here are the costs involved in forming an LLC in Michigan.

Cost of Filing Formation Certificates

The Michigan Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Michigan Corporation Division

Michigan Domestic LLC

  • Online filing costs $50
  • Annual Report filing costs $25
  • Name Reservation fee costs $25
  • By mail: Fill out the Application form PDF, and submit it to the following address: Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau Corporations Division P.O. Box 30054 Lansing, MI 48909, costs $50

You can also file the application in person at the address, 2501 Woodlake Circle Okemos, MI

Michigan Foreign LLC

  • Online Filing costs $50
  • Annual Report filing costs $25
  • Name Reservation fee costs $25
  • By mail: Fill out the Application form PDF, and submit it to the following address: Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau Corporations Division P.O. Box 30054 Lansing, MI 48909, costs $50

You can also file the application in person at the address, 2501 Woodlake Circle Okemos, MIVisit the Official Website of the Michigan Department of Licensing and Regulatory Affairs to get more information about business entity filings, forms, and fees.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Michigan LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Michigan, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Bureau of Professional Licensing website and the state business licenses search tool for more information. 

Michigan LLC Taxes to be Paid

Like the majority of the States, the business LLCs in Michigan are subject to different State Tax filing obligations. Though the taxes may vary between county and cities.

Michigan State Income Tax

This is the State Tax levied on any income you pay to yourself. A flat tax rate of 4.25% is applicable to the total amount of taxable income.

Michigan Sales Tax

The standard rate of sales tax applicable is at the rate of 6.00%.

Michigan Federal Self-employment Tax

Any profit that Michigan LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.

Michigan Payroll Tax Withholding

If you hire employees in Michigan, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.

Cost Comparison among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you want to get a better understanding of the costs of opening an LLC in a different state in comparison to Michigan, read the table below:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Michigan LLC$50$25 (annual)6.00%
Ohio LLC$99None5.75%
Indiana LLC$100 (mail)$95 (online)$50 (mail) (biennial)$31 (online) (biennial)7.00%
Wisconsin LLC$130 (online)$170 (mail)$25 (annual)5.00%
Illinois LLC$150$75 (annual)6.25%

The State of Michigan is recognized as a center of automotive industries in the US. It has a diverse economy and its major industries include manufacturing, tourism, and agriculture. 

Other Costs

How Much Does It Cost To Maintain An Llc In Michigan

To maintain an LLC in Michigan you will need to pay an annual fee of $25 along with sales tax at 6%, income tax at 4.25% and federal taxes.

Whether you are starting a business in Michigan, or are expanding an existing one, understanding the cost of maintaining an LLC is essential. This way, you can make wise decisions and prepare a budget. While costs can vary depending on the type of business and location, there are a few common expenses that apply to all LLCs. You will need to file annual reports, pay payroll and self-employment taxes, and pay state and federal income taxes.

The cost of filing the articles of organization to form a Michigan LLC can vary. You can file online, by mail, or in person. The Michigan Department of Licensing and Regulatory Affairs (LARA) will process your documents based on the information you have submitted. The state collects a fee for the annual report, which is a required part of maintaining an LLC in good standing. Typically, this fee is $25. The state will mail a pre-filled annual statement form to your registered agent. You can send your annual report by mail, or you can file online.

The cost of maintaining an LLC in Michigan can vary depending on whether you choose to hire a professional registered agent service. These services can save you time and effort by ensuring that you file all necessary legal documents. The cost of a professional registered agent service can range from about $125 per year to around $130. In addition, these companies offer helpful services that are beneficial to running a business.

One of the first things you should do after forming your Michigan LLC is to find a Michigan Resident Agent. This agent will serve as the legal name for your LLC. Your Resident Agent will receive legal documents on behalf of your LLC, notify you of important documents, and provide a Michigan street address for your LLC. Your Resident Agent should be available during business hours, and you should be able to communicate with your Resident Agent regarding your business.

You may also want to make a reservation for the name of your LLC. Depending on the type of business you are in, you may need to obtain a permit or license. In addition, you may need to pay a fee to renew the license or permit. Some industries may also require you to renew your license or permit on a semi-annual basis. The cost of obtaining a license or permit can vary from $0 to $1,000.

Some Michigan business owners may also need to obtain a sales and use tax license. Businesses selling products to consumers may have to register for sales tax, while businesses in other industries may have to register for use tax.

You may also need to hire an accountant to prepare your taxes. A good accountant can ensure that your taxes are filed correctly. If you have any questions about your taxes, you can contact the Michigan Department of Treasury. They will provide you with additional tax information and help you determine the appropriate taxes to pay.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Michigan is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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