LLC Cost in Michigan – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing 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

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 essential costs associated with maintaining an LLC in Michigan is the annual filing fee. Every LLC in the state is required to submit an Annual Statement and the corresponding filing fee to the Department of Licensing and Regulatory Affairs (LARA). Failure to file this statement by the deadline can lead to penalties and the eventual dissolution of the LLC.

In addition to the annual filing fee, business owners should also consider the cost of maintaining a Registered Agent in Michigan. A Registered Agent is an individual or entity designated to receive legal documents and official notices on behalf of the LLC. This is a crucial requirement to ensure that the LLC can be reached for any legal matters. While business owners can serve as their own Registered Agent, many opt to hire a professional service to fulfill this role.

Another important cost to consider is the expense of necessary business licenses and permits. Depending on the nature of the business, LLCs in Michigan may need to obtain specific licenses or permits to operate legally. These costs can vary depending on the industry and location of the business, so it’s crucial for business owners to research and budget for these expenses accordingly.

Maintaining compliance with state regulations also requires keeping accurate and updated records for the LLC. This includes maintaining minutes of meetings, financial reports, and other documentation as required by Michigan law. Failure to keep proper records can result in fines or other penalties, so business owners should allocate resources to ensure that their record-keeping practices are in order.

Additionally, LLCs in Michigan are subject to state taxes, including the Corporate Income Tax and the Sales and Use Tax. Business owners need to be aware of their tax obligations and ensure that they are paying the necessary taxes to the state. Hiring a professional accountant or tax advisor can help ensure that these obligations are met accurately and on time.

Overall, the cost of maintaining an LLC in Michigan can vary depending on the size and nature of the business. It’s essential for business owners to budget for these expenses and remain vigilant about compliance with state regulations to avoid penalties or legal issues. By understanding the costs and obligations associated with maintaining an LLC in Michigan, business owners can better navigate the requirements of operating a successful business in the state.

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.

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.

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