How to Form an LLC in Michigan (2026)

1. 1Choose a name for your LLC and verify availability by searching the Michigan LARA business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Michigan.
3. 3File Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). The filing fee is $50. Online and in-person filing options are available.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Michigan but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required state and local business licenses or permits.
8. 8File your first Annual Statement by February 15. The fee is just $25.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Michigan state taxes with the Department of Treasury
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits
• ✓File your first Annual Statement ($25) by February 15

Your Michigan LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities registered with LARA.

Michigan LLCs are pass-through entities by default. Members pay Michigan individual income tax at a flat rate of 4.25% on their share of profits. Michigan does not impose a franchise tax on LLCs. The Annual Statement costs just $25. Some cities (notably Detroit) impose a city income tax.

LLC vs. other structures in Michigan

Michigan is one of the cheapest states overall for LLCs: $50 to file and $25/year. Total first-year cost is only $75. The 4.25% flat income tax rate is competitive. Michigan is an excellent value for LLC formation.

• •File an Annual Statement by February 15 each year — $25 fee
• •Maintain a registered agent with a physical address in Michigan at all times
• •Keep your operating agreement current and update it when membership changes
• •File Michigan state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

Michigan offers a reasonable cost structure for LLCs. The $50 filing fee is competitive, and ongoing costs are manageable. If you operate in Michigan, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Michigan, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Michigan LLC Owners Need to Know

• •Michigan is one of the cheapest states overall: $50 filing fee and $25/year
• •Total first-year cost is only $75
• •Michigan requires filings through LARA (not the Secretary of State)
• •Annual Statement is due February 15 each year

Official Michigan Resources

• Michigan LARA — Bureau of Community Services
• Michigan Online Business Filing