Legal Bueno

    How to Start Your LLC in Michigan

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $50
    • Turnaround time: 10 business days

    How do I start an LLC in Michigan?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Michigan, visit https://cofs.lara.state.mi.us/SearchApi/Search/Search.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Michigan?

    Here's the rundown for Michigan:

    • The filing fee is: $50
    • There are ongoing fees of $25 (every year)
    • It usually takes 10 business days if you're filing online or 10 business days (plus mail time) if by mail.

    Why Michigan is a great state for your LLC

    Starting a company in Michigan comes with numerous benefits that cater to entrepreneurs and small business owners. Here are some compelling reasons to consider establishing your business in this state:

    • Business Incentives: Michigan offers a range of business and tax incentives aimed at fostering growth and attracting new companies. Programs like Jobs Ready Michigan specifically encourage firms to expand or relocate to the state, making it a prime location for capitalizing on opportunities.
    • LLC Formation: For aspiring entrepreneurs, forming a Michigan limited liability company (LLC) is a straightforward and efficient method to start a business. An LLC provides essential protections and benefits, allowing you to enjoy some of the advantages typically associated with larger corporations.
    • Liability Protection: By establishing an LLC, business owners can separate and limit their personal liabilities and debts. This structure safeguards personal assets, ensuring that business risks do not negatively impact personal wealth.
    • Simplicity and Efficiency: The filing process for a Michigan LLC is quick and uncomplicated. Entrepreneurs will find management and compliance to be less cumbersome compared to other business structures, which can encourage innovative focus rather than administrative burdens.
    • Cost-Effective: Starting an LLC in Michigan is economically viable, with a low filing fee of just $50. This makes it approachable for new business owners looking to minimize startup costs while maximizing their entrepreneurial potential.
    • Tax Benefits: Michigan’s favorable tax environment can provide advantages in tax treatment for businesses. This can lead to enhanced financial flexibility and profitability for startups and small businesses.

    With these supportive factors, Michigan stands out as an attractive option for launching a new company, making it easier for entrepreneurs to succeed.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Michigan:

    Articles of Organization

    The articles of organization must include: 1. The name of the LLC;

    1. The purposes for which the LLC is formed. It is sufficient to state that the LLC may engage in any activity for which LLCs may be formed;
    2. The street address, and the mailing address if different from the street address, of the LLC's initial registered office and the name of its initial resident agent at that address.
    3. If the business of the LLC is to be managed by managers, a statement that the business is to be managed by or under the authority of managers.
    4. The maximum duration of the LLC, if other than perpetual.

    The articles of organization may contain any provision consistent with this act or another Michigan statute, including any provision that is required or permitted to be in an operating agreement.

    Mich. Comp. Laws § 450.4203

    Filing fee: $50

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Michigan laws require for filing:

    A document required or permitted to be filed must be submitted by delivering the document to the administrator together with the fees and accompanying documents required by law. Documents may be submitted by electronic mail or over the Internet.

    If a document submitted substantially conforms to the requirements, the administrator must endorse upon it the word “filed” with his or her official title and the date of receipt and of filing, and file and index the document.

    The administrator must return a copy of a filed document filed to the person who submitted it for filing. The administrator must mark the filing date on the copy or original before returning it or, if the document was submitted by electronic mail or over the Internet, may provide proof of the filing date to the person who submitted the document for filing in another manner determined by the administrator.

    Mich. Comp. Laws § 450.4104

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Michigan:

    Conflict between articles of organization and operating agreement

    Mich. Comp. Laws § 450.4214

    Operating agreement unenforceable

    Mich. Comp. Laws § 450.4215