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 significant consideration when it comes to maintaining an LLC is the filing fees charged by the state. In Michigan, new businesses are required to file Articles of Organization with the Department of Licensing and Regulatory Affairs (LARA). This initial filing fee covers the administrative costs associated with setting up the LLC. It is crucial for business owners to research and budget carefully to ensure they account for these expenses accurately.
Apart from the initial filing fees, there are also annual fees an LLC must pay to LARA in Michigan. These fees can vary depending on several factors, such as the total value of the company’s authorized shares or the organization’s annual income. Business owners should be aware that these fees are non-negotiable expenses, and failing to pay them can result in penalties and potential dissolution of the LLC. Hence, it is vital to include ongoing fees into the company’s financial planning and budgeting.
Another essential aspect of maintaining an LLC in Michigan is taxes. As a separate legal entity, an LLC must file tax returns with the Internal Revenue Service (IRS) and Michigan Department of Treasury. While LLCs themselves are not subject to federal income tax, their profits and losses typically pass through to the owners’ personal tax returns. Additionally, Michigan imposes a Business Income Tax on pass-through entities like LLCs. These personalized tax obligations should be carefully considered and factored into the overall expenses associated with maintaining an LLC.
In addition to the state fees and tax responsibilities, LLCs in Michigan may incur costs for necessary permits and licenses. Depending on the nature of the business, acquiring permits or licenses might be legally required. Again, the costs associated with permits and licenses can vary depending on each specific situation, making it crucial for entrepreneurs to research and account for these expenses accurately, ensuring compliance with all regulations governing their particular field.
Furthermore, it is essential for business owners to consider anticipated legal fees associated with an LLC. While not mandatory, consulting an experienced attorney in regards to drafting and reviewing contracts, creating operating agreements, or addressing potential legal issues can be beneficial. Legal representation is invaluable, saving businesses substantial costs and possible litigation in the long run.
Ultimately, while the precise costs of maintaining an LLC in Michigan will vary, prospective entrepreneurs should embrace a clear understanding of the expenses involved. Careful research, consultation with professionals, and thorough budgeting are crucial for ensuring businesses can stay financially stable while still reaping the benefits of limited liability protection and other advantages an LLC may offer. By comprehending these potential expenses from the outset, entrepreneurs can make well-informed decisions about starting and maintaining an LLC in Michigan, setting themselves up for long-term success.
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.
