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.
On this page, you’ll learn about the following:
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $99 per year |
| |
 | $125 per year |
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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:
| State | Filing Fee | Annual Fee/Biennial Fee | Sales Tax |
| Michigan LLC | $50 | $25 (annual) | 6.00% |
| Ohio LLC | $99 | None | 5.75% |
| 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
- Michigan Name Reservation: $25 for online and mail filing
- Doing Business As (DBA): $25 for online or mail filing
- Certified Document Copies: $16 + $1 per page if 7 pages or more.
- Certificate of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Michigan LLC: $10
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
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
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.