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

In Michigan, there are several fees associated with operating an LLC. Although there are no required fees up front, you should consider paying a registration fee, Annual Report fee, and taxes. By understanding these costs, you’ll be able to determine how much it will cost to maintain an LLC in Michigan. If you don’t have enough money upfront, you can consider becoming a sole proprietor instead.

In Michigan, LLCs must file an annual report with the state. Annual reports are required by law, and are due February 15 of each year. Foreign LLCs formed after September 30 of a previous year do not need to file an annual report. The state requires professional LLC annual statements from all members, including the manager. It’s also necessary to confirm that the manager is properly licensed in the industry. These documents require a $25 fee, which can be avoided if you call several banks.

Once you’ve formed your company, it’s time to file your state and local taxes. Failure to pay taxes will result in hefty fines and loss of good standing. The penalty for failing to pay taxes may range from 250% to 500% of the amount owed. This can lead to serious financial hardship and even the dissolution of the company. To avoid these expenses, you can choose a low-cost business formation company to handle your Articles of Organization filings and provide registered agent services.

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.

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