How to Form an LLC in Michigan

Select a unique business name that complies with Michigan naming requirements and check availability through official state database. Your LLC name must include 'Limited Liability Company,' 'LLC,' 'L.L.C.,' 'LC,' or 'L.C.' and cannot be identical or confusingly similar to existing Michigan businesses. Search the LARA database thoroughly using variations of your desired name including different abbreviations and similar sounding alternatives. Consider trademark searches through USPTO database to avoid future conflicts. Verify domain name availability for your chosen name to ensure consistent branding across all platforms. If you need time to prepare formation documents or secure funding, consider reserving your name for 180 days.

Appoint a registered agent (called 'resident agent' in Michigan) who will receive legal documents and official correspondence on behalf of your LLC. The agent must have a physical Michigan street address (no P.O. boxes) and be available during normal business hours (9 AM to 5 PM) Monday through Friday. You can serve as your own registered agent if you're a Michigan resident, but this makes your personal address public record and requires you to be available during business hours. Professional registered agent services provide privacy protection, ensure reliable document receipt, and allow you to operate your business from any location. Compare pricing and services carefully as costs range from $49 to $199+ annually.

Submit your Articles of Organization to the Michigan Department of Licensing and Regulatory Affairs (LARA) to officially form your LLC. The required state filing fee is $50 whether filed online, by mail, or in person. Online filing through LARA's portal is fastest with typical processing of 5-7 business days. Include your LLC name, registered agent information, organizer details, and business purpose. You can choose to delay your LLC's effective date up to 90 days in the future if needed. Expedited processing is available for additional fees: $50 for 24-hour service, $100 for same-day, $500 for 2-hour, or $1,000 for 1-hour processing. Consider using professional formation services if you want assistance with paperwork and faster processing.

Apply for your federal Employer Identification Number (EIN) through the IRS, which serves as your business's tax identification number. An EIN is required if your LLC has employees, multiple members, or if you want to open a business bank account (most banks require an EIN even for single-member LLCs). The IRS provides free online applications available Monday through Friday during business hours with immediate approval. Single-member LLCs without employees can use the owner's Social Security Number instead, but an EIN provides better privacy and professional credibility. Avoid third-party services that charge fees for this free government service.

Draft a comprehensive operating agreement that defines how your LLC will be managed, even though Michigan law doesn't require this document. The operating agreement should specify member ownership percentages, profit and loss distribution, management structure (member-managed vs. manager-managed), voting rights, procedures for adding or removing members, and dissolution procedures. This internal document protects the LLC's limited liability status and prevents disputes between members. Single-member LLCs should still create operating agreements to maintain corporate formality and protect against personal liability. The agreement is kept private and not filed with the state.

Research and obtain all necessary business licenses and permits at federal, state, and local levels based on your business type and location. Michigan doesn't require a general state business license, but specific industries need specialized permits. Common requirements include sales tax licenses for retail businesses, food service licenses for restaurants, professional licenses for regulated occupations, and local business licenses from your city or county. Use the Michigan Business License Search tool to identify state-level requirements and contact your local municipality for city/county permits. Professional services like accounting, healthcare, and legal practices require specific state licensing through LARA.

Open a dedicated business bank account using your EIN, Articles of Organization, and operating agreement to maintain separation between personal and business finances. This separation is crucial for protecting your LLC's limited liability status and simplifying tax preparation. Research business banking options comparing monthly fees, transaction limits, and available services. Many banks offer incentives for new business accounts including waived fees for initial periods. Set up business accounting software to track income, expenses, and prepare for tax obligations. Consider working with a CPA to establish proper accounting procedures and understand Michigan tax requirements.

File Michigan's annual statement by February 15th each year with a $25 fee to maintain your LLC's good standing with the state. The statement updates your LLC's information and confirms continued operation. Mark your calendar as late filings incur penalties and can lead to administrative dissolution. If you formed your LLC after September 30th, you won't need to file until the following February 15th. Keep your registered agent information current and file change forms within 60 days of any address changes to avoid potential dissolution. Maintain corporate formality by keeping business and personal finances separate, holding member meetings when required, and updating your operating agreement as needed.