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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.
First and foremost, there are the initial formation costs of setting up an LLC in Michigan. These costs typically include filing fees with the state, registered agent fees, and any legal assistance you may require. While these costs can vary depending on the specifics of your business, they are necessary expenses to establish your LLC and ensure it is legally recognized.
Once your LLC is up and running, there are ongoing costs to consider to keep it in good standing with the state. Annual reporting fees must be paid to the Michigan Department of Licensing and Regulatory Affairs to update your business information and maintain compliance with state regulations. Additionally, there may be franchise taxes or other annual fees depending on the revenue or size of your LLC.
Another important cost to keep in mind is the cost of staying compliant with state regulations. This may involve obtaining necessary licenses and permits, maintaining accurate financial records, and staying up to date with tax obligations. Failure to comply with these regulations can result in penalties or even the dissolution of your LLC, so it’s crucial to budget for these costs and ensure you are operating within the law.
In addition to these mandatory costs, there may be other expenses associated with maintaining an LLC in Michigan. This could include hiring professional services such as accountants or legal counsel to help you navigate complex tax laws or regulations. While these services can be an additional cost, they can also save you time and stress in the long run by ensuring your business remains in good standing with the state.
It’s important for business owners to carefully consider the costs of maintaining an LLC in Michigan and budget accordingly. By understanding the expenses involved and planning ahead, you can avoid financial surprises and focus on growing your business successfully. While there may be upfront and ongoing costs associated with running an LLC, the benefits of limited liability protection and a formal business structure often outweigh these expenses in the long term.
In conclusion, maintaining an LLC in Michigan requires careful consideration of the costs involved. By understanding the expenses associated with forming and operating an LLC, business owners can better prepare for the financial obligations of running their business. While there may be upfront and ongoing costs to consider, the benefits of having a legally recognized business structure and limited liability protection make the investment in maintaining an LLC worthwhile for many entrepreneurs.
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.