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.

As an LLC in Michigan, you are responsible for paying self-employment tax and payroll taxes. There are also other taxes you must pay, such as sales and use taxes. In addition to these costs, you will need to file Annual Statements with the Department of Treasury. These are due every year by February 15th. Your business may need to pay annual business taxes, too. Sales tax is required if you sell products or services.

You must get the Certificate of Good Standing to prove your LLC is legitimate. This document costs $10 and can be ordered online, by phone, or through the mail. If you’re ordering a copy by mail, you must make the check payable to the State of Michigan. You can also pay by credit card. The cost of this document is dependent on the amount of profit your LLC makes. If you’re considering starting an LLC in Michigan, consider these expenses.

Although Michigan does not require a general state business license, it requires specific industry and professional licenses to operate legally. These fees will add up. In addition to the license fee, there will be ongoing expenses for lease or taxes. Some new business owners may forget about license fees, though. You can find out exactly what types of licenses you need and how much they cost by using a Michigan state license search.

In addition to these fees, LLCs in Michigan must also appoint a registered agent. This person serves as the main point of contact for the state and accepts service of process in case of a lawsuit. If you aren’t able to afford this expense, you can hire a registered agent. Registered agents can be found online at ZenBusiness. The company will then calculate the cost of setting up an LLC in Michigan and get you up and running in no time.

Creating an LLC requires filing formation documents and filing fees. Then, you must renew the status of your business each year. Alternatively, you can hire a business formation company to help you get the paperwork done. During this process, you’ll be required to obtain an EIN, also known as an employer identification number, issued by the IRS. Your EIN will be used for federal taxes and hiring employees. Your EIN will be used for state taxes as well.

Forming an LLC in Michigan is fairly inexpensive, and it will help protect your personal assets while growing your business. In Michigan, forming an LLC costs about $50. There are other fees, however. In addition to the filing fee, you will need to file Articles of Organization. The filing fee for this document is $50, and you will need to pay an additional $75 if you fail to file your annual reports on time.

Every LLC in Michigan must have a registered agent in the state, which accepts legal documents on behalf of the company. The registered agent can be the LLC’s owner or a Michigan corporation. An outside corporation with a certificate of authority to conduct business in Michigan can also serve as a registered agent. The agent must have a physical address and phone number in Michigan. To file your articles of organization in Michigan, you’ll need to file an application for an LLC in the state’s Department of Commerce. The filing fee for the documents is usually $50.

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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