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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.
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  | $0 + State Fees |
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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.
One of the primary costs of maintaining an LLC in Michigan is the filing fees required to establish and renew the business entity. When forming an LLC in Michigan, entrepreneurs must pay a filing fee to the Michigan Department of Licensing and Regulatory Affairs (LARA). Additionally, LLC owners are required to file an annual report with LARA and pay the associated filing fee. These fees can vary depending on the specific requirements set by the state, so it is essential to budget for these expenses in advance.
Beyond filing fees, LLC owners in Michigan may also incur costs related to business licenses and permits. Depending on the nature of the business, certain industries or activities may require specific licenses or permits to operate legally in the state. Obtaining these licenses and permits often comes with additional fees that business owners must factor into their budget.
Aside from government fees and licenses, LLC owners in Michigan should also consider the costs associated with compliance and ongoing maintenance. Keeping up with regulatory requirements, such as maintaining proper records, holding annual meetings, and updating company information with LARA, requires time and effort. Some LLC owners may choose to hire a professional service to handle these tasks, which can add to the overall costs of maintaining the business entity.
Furthermore, LLC owners should be prepared for potential expenses related to legal and accounting services. While not required, seeking legal advice and professional financial guidance can help protect the business and ensure compliance with state laws and regulations. Attorneys and accountants can assist with drafting operating agreements, reviewing contracts, filing taxes, and providing general advice on business operations.
Finally, LLC owners in Michigan should consider the costs associated with business insurance. While not required by law, obtaining insurance coverage can help protect the business from unexpected liabilities, such as lawsuits or property damage. The cost of business insurance will vary depending on the type of coverage needed and the size of the business, but it is an essential expense to consider when maintaining an LLC in Michigan.
In conclusion, maintaining an LLC in Michigan comes with various costs and responsibilities. From filing fees and licenses to compliance requirements and professional services, LLC owners should budget for these expenses to ensure the longevity and success of their business. While these costs may seem daunting at first, investing in the proper maintenance of an LLC can provide long-term benefits and protection for the business and its owners.
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.