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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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.

When it comes to filing paperwork, the Michigan Department of Licensing and Regulatory Affairs (LARA) requires all Michigan LLCs to file an annual report. This report is necessary for the LLC’s continued good standing and compliance with state law. Filing an Annual Report costs $25 and must be filed on or before February 15th. In addition to filing the annual report, you may have to apply for certain business licenses or permits, depending on the nature of your business. For example, many businesses in Michigan require a sales and use tax license.

An LLC in Michigan must appoint a resident agent. This person will be the primary point of contact for all legal issues regarding the LLC. Papers relating to the LLC must be sent to this agent. A resident agent can be the owner of the business, provided they live in Michigan and are not personally served. Alternatively, an outside registered agent service may be used. The cost of a resident agent does not increase significantly.

Filing an LLC in Michigan requires the filing of Articles of Organization. These documents must be filed with the Michigan Department of Licensing and Regulatory Affairs (MLRA). An LLC in Michigan must also file an annual report. If a member of the LLC is not a member, they must sign an agreement that states that the other members will not be liable. These documents are available online and in hardcopy, and cost $50. While it may be a bit pricey, they are usually not expensive compared to other forms.

In addition to filing annual reports, LLCs in Michigan must pay taxes to the Michigan Department of Treasury. If there are employees, you must also pay unemployment insurance tax. There are many other taxes and fees to be paid as a business owner, so it is best to plan ahead and think about your future needs when considering the benefits and disadvantages of operating an LLC. If you anticipate growth, you may want to consider an LLC before you decide to file an annual report.

Another important consideration is the availability of business names. In Michigan, you must make sure that the name you are considering is available and does not already exist. You also need to ensure that the name does not conflict with other businesses in the state. A similar name can create confusion among customers and other members of the public. If you’re considering filing a name reservation for your business in Michigan, check whether it meets these requirements before proceeding.

Lastly, it is necessary to choose a name for your LLC. An LLC should be unique enough to distinguish itself from other business entities. You can reserve a name for up to six months by submitting the form online or in the state’s business database. There is a fee of $25 for filing an application for a name reservation. You can pay this fee online or in person. There are three ways to file an application for a name reservation in Michigan.

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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