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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 | $299 + 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.
Operating a Limited Liability Company (LLC) in Michigan requires ongoing expenses. As a business owner, it is vital to have a full understanding of these expenses to have a realistic budget and long-term planning. Let’s examine some of the costs associated with maintaining an LLC in Michigan.
One of the essential elements of an LLC in Michigan is the Annual Report. This report confirms your business’s legal existence and current contact information. Every LLC in Michigan must file an annual report once a year, and the current filing fee is $25. Failure to file this report on time can result in your LLC’s suspension. Ensure you include this filed document in your extra paperwork storage.
Michigan now has its State Business Tax called the Michigan Business Tax (MBT) which Michigan mandates about an 0.8 percent tax on net profit for LLCs. It is an obligation for a business owner to calculate what amount of Michigan Business Tax rights out each year and reports it. With the enormous help of accounting software online, calculating and reporting the MBT by yourself should be achievable.
Additionally, Federal Employer Identification Numbers (EINs) are vital for all LLCs. This number is necessary to operate a small business, including LLC in Michigan, and must be obtained from the IRS. An EIN is essential if you plan to hire employees and open a business bank account, among other benefits. There are usually no fees and lengthy routines under sixty minutes that you can successfully use to retrieve an EIN with good internet tools.
It is also recommended to consult with a business attorney while implementing your LLC in Michigan. If any legal issues arise, you have someone familiar with your business and able to assist you. The expenses here vary wildly depending on which attorney you pick as each law firm will have their independent fees.
Accounting and tax preparation are other essential services for your LLC’s overall performance and ongoing compliance. Keep your accounting books consistently ordered to avoid tax and accounting errors and setbacks that might cost the business considerable time and additional hassles. Again, outsourcing experienced assistance becomes another option for managing precise taxation records and reports and following relevant expenditure limits to reduce taxes expenses.
Keep in mind several other potential costs associated with maintaining an LLC in Michigan, such as business license fees, operating expenses, rent, and any additional permits and insurances based on the weather patterns and other factors involved in the establishment. Therefore, there might still be additional resources that enhance overall operational welfare required to put your LLC organization to a competitive level on the contemporary business tide.
To wrap it up, it is essential for all Michigan LLC owners to remain well-informed about the ongoing expenses beyond the responsibilities natural with founder membership initiation. Your LLC needs a steady and assertive footing to retain a steady, relevant base as you build strategically in response to new taxation requirements from the various formal institutes in the Michigan political system. Like most businesses, LLC operating expenses in Michigan vary. Thus keeping a working budget in tandem and helping to compare receipts against ongoing forms and reports can boost overall implementation scaling up. By conducting multiple assessments and evaluations into your long-term plans on smaller budgets at crucial milestones of operation and inflection bursts, you can keep costs down and sustain your LLC over time.
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.
