It’s not a secret that Michigan is among the most business-friendly states in the Midwest. However, like any other state, your company must cover formation and maintenance expenses to enjoy their offered perks. Let our business enthusiasts solve that dilemma by walking you through all Michigan LLC fees and giving you tips on avoiding delays and non-compliance risks. 

Formation Costs for a Michigan LLC

Business Name Reservation

While reserving your desired business name isn’t required by the state of Michigan, this procedure is beneficial in rare circumstances that you’re not yet ready to start your LLC formation right away. By paying a $25 reservation fee, you can gain 180-day exclusive rights on the said LLC name prior to your official registration. 

But, suppose you have no other important engagement to attend to, the best advice our team could suggest is to file your articles of organization in order to secure your chosen LLC name and proceed with other requirements.

Articles of Organization

Typically, the filing fee for formation documents can be the most costly registration costs you have to pay in other states. However, here in Michigan, submitting your articles of organization only charges you $50, regardless if you send it via mail or online. 

white hardbound files

This formation document allows the state to record and review your company details, such as LLC name, business address, members, registered agent details, and many more. 

Operating Agreement

The Michigan government won’t require your LLC to draft an operating agreement upon submission of documents, but it will be convenient for your company to have one. This internal document outlines everything from ownership rights to operational provisions, helping you and your members make lawful management decisions right away. 

You can create it yourself without any incurred charges or hire a legal professional, which we highly recommend to avoid lapses and ensure thoroughness of the document.

EIN Registration

After settling initial Michigan LLC fees, the next step you should take is requesting an Employer Identification Number (EIN) from the IRS [1]. You can apply for this nine-digit state requirement for free, and it will allow your business to be identified and allocated with appropriate taxes.

Resident Agent

You may not know it, but electing a reliable resident agent gives your business the leverage of maintaining your limited liability perks. As the legal receiver of all notices and demands from the state, it’s a no-brainer how crucial this role is.

Lady talking to another lady

Although you can technically be a resident agent for your LLC, this role has demanding obligations that you may not handle if you want to focus on business operations. Therefore, our trade experts’ best advice is to hire professional services to ensure full compliance, which will cost you around $0 –  $300, depending on your desired package.

Business License/s

Getting your articles of organization approved isn’t the last of your required formation procedures. In the state of Michigan, not all LLCs are required to obtain licenses and permits, but it depends on the nature of your business. You can check for local, state, and municipal licensing requirements at Michigan’s State License Search portal.

Certificate of Good Standing

In the duration of your business operations, you’ll encounter important transactions with banks and lending institutions. One of the requirements they’ll ask of you is your LLC’s Certificate of Good Standing. You may request it from the Department of Licensing and Regulatory Affairs online or via mail for $10 and $12.50 for in-person submission. 

Foreign LLC Registration

If your LLC is already formed in other states, then you must submit an Application for Certificate of Authority along with a $50 one-time filing fee. Failure to submit this document while operating could incur your business some hefty penalties, so it’s best to file it right away. You can always seek the services of professional LLC formation providers for hassle free transactions. 

woman using laptop

LLC Formation Services (Optional)

It’s no secret that running a business requires time and effort, so some owners opt to hire LLC formation services or top-rated online incorporation services to handle the entire registration process. Should you decide to sign up for one, expect your expenses to range from $0 – $300.  

Michigan Annual LLC State Fees

Annual Statement

Now that we’re done with the LLC formation costs, let’s discuss the recurring fees and obligations that any MIchigan LLC must accomplish. Every year, the state will require you to submit an annual statement to ensure that your records’ details are updated. This submission must be made by Feb. 15 and comes along with $25.

FAQ

How do I pay my annual LLC fees in Michigan?

To pay your annual LLC fees in Michigan, you have to submit a yearly statement on or before February 15, after the year your business has been registered. This document should be inclusive of your company’s updated information and must come along with a $25 filing fee. 

Conclusion

We know looking at these Michigan LLC fees may seem a bit overwhelming, but calculating your expenses before proceeding to register is already a remarkable feat. Now that you’re well-informed about the costs, the next step is to include this in your business plan. Always remember, your perks only remain if you consistently comply with your obligations. 

For LLC formation expenses and regular yearly fees, you can also check these related pages: 

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