Starting a Michigan LLC is an exciting step toward turning your idea into a real business. Maybe you’re brewing up something bold in Grand Rapids or crafting custom products from your Detroit home studio.
No matter your vision, forming an LLC helps you protect your personal assets, gain professional credibility, and launch your business on solid ground. Let’s cover how to start an LLC in Michigan step by step so you know exactly what to expect.
Related: Compare LLC to LLP
How to start an LLC in Michigan in 5 steps
To open an LLC in Michigan, you’ll need to choose a name, appoint a registered agent, file the Articles of Organization, create an operating agreement, and get an EIN. While it may seem like a lot, the process is straightforward and can often be completed in just a few business days when you file online through the Michigan Department of Licensing and Regulatory Affairs (LARA).
If you’re new to business ownership, you may also want to review this guide on how to start a business and learn what an LLC organizer is. When you’re ready to take the leap, GoDaddy Airo offers LLC free setup for entrepreneurs.
Choose a name for your LLC
Before officially forming your business, you need to find a name for your LLC. Your business name helps you stand out, but it also needs to meet Michigan’s legal requirements. The Michigan Department of Licensing and Regulatory Affairs requires that every LLC name:
- Includes “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.”
- Avoids implying that the business is affiliated with a government agency (for example, using “FBI” or “Treasury”).
- Is distinguishable from any existing business name registered in Michigan.
- Does not use restricted words such as “bank,” “trust,” or “insurance” without approval.
You can confirm availability by using the LARA Business Entity Search tool. If you’ve chosen a name but aren’t ready to register right away, you can reserve it for six months for $25.
Get your business domain name
Once you’ve decided on a business name, it’s a good idea to secure the matching domain before someone else does. Your domain helps customers find you online and keeps your branding consistent. Not sure where to start? Buy a domain name for your LLC from GoDaddy!
Get a DBA
A DBA (doing business as), also called an assumed name, allows you to operate under a different trade name than your registered LLC name. This can be useful if you plan to market different products or services under separate names. You can register a DBA through LARA for $25. Learn what a DBA is and decide if your business needs one.
Appoint a registered agent
Every LLC in Michigan must designate a registered agent. This person or business will accept legal and official documents on behalf of your company. Michigan law requires that your registered agent:
- Has a physical address in Michigan (no P.O. boxes).
- Is available during normal business hours.
- Can be an individual (including yourself), another LLC member, or a professional registered agent service.
Having a registered agent ensures your LLC never misses important communications from the state or courts. Learn more about what a registered agent is in our handy guide.
File Articles of Organization
To officially form your Michigan LLC, you must file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs. You can do this online through the LARA Corporations Online Filing System or by mailing in a completed form. You’ll need to include:
- Your LLC name and purpose
- Business address
- Registered agent’s name and address
- Management structure (check out the types of LLCs here)
The filing fee is $50. Processing typically takes a few business days if submitted online. Michigan also offers expedited service for an additional fee if you need faster turnaround.
Create an operating agreement
While Michigan does not legally require an operating agreement, it’s highly recommended for all LLCs. This document outlines how your company will operate and helps prevent disputes by clarifying roles, ownership percentages, and procedures. A strong operating agreement should include:
- Member and manager roles and responsibilities
- Ownership percentages
- Voting rights and procedures
- Profit and loss distribution
- Rules for adding or removing members
- Dissolution terms if the LLC closes
Even if you’re the only member, having an operating agreement can help maintain your limited liability status and make it easier to open a business bank account or apply for financing. Need help writing one? Read our “What is an operating agreement” guide.
Get an EIN
An Employer Identification Number (EIN) is a unique identifier for your business issued by the IRS. You’ll need it to:
- File taxes
- Hire employees
- Open a business bank account
- Apply for licenses or permits
You can apply for an EIN through the IRS website. For more information on business IDs, check out this article on the difference between TIN and EIN.
How long does it take to get an EIN?
When you apply online, your EIN is issued immediately after your application is complete.
How much does an EIN cost?
It’s completely free to apply for and maintain an EIN. There are no additional processing or renewal fees.
How much does it cost to start and run an LLC in Michigan
Starting and maintaining an LLC in Michigan comes with a few key costs. Here’s a breakdown:
- Articles of Organization filing fee: $50 (one-time fee paid to LARA)
- Name reservation (optional): $25 for six months
- DBA registration (optional): $25
- Annual report fee: $25, due every year by February 15
- Registered agent service: $100–$300 per year (if you hire a professional)
- Federal taxes: LLCs are pass-through entities, so profits are taxed on members’ personal returns.
- State taxes: Michigan has a 4.25% flat income tax rate and a 6% sales tax rate on applicable goods and services.
Altogether, most business owners spend around $100–$400 upfront to establish their Michigan LLC, plus small recurring annual and tax-related costs.
What happens after your LLC is up and running
There are a few more things you need to do once your Michigan LLC is formed to keep it compliant.
Open a business bank account
Opening a dedicated bank account for your LLC separates your personal and business finances, which helps protect your personal assets and makes bookkeeping easier. Most banks will require:
- Your LLC’s Articles of Organization
- Your EIN from the IRS
- Your Operating Agreement
- Personal identification for all account signers
Having a separate business account also builds credibility with clients and lenders while making tax season much simpler.
File for permits and required business licenses
Depending on your industry and location, your LLC may need additional permits or licenses before operating. Not every business is required to have them, but it’s important to check before launching.
You can determine what you need by visiting the Michigan Business One Stop portal or contacting your local city or county clerk’s office. They can guide you through any professional, environmental, or local licensing requirements that apply to your business type.
File your annual statement
Every Michigan LLC must file an annual statement (also called an LLC annual report) with LARA by February 15 each year. This filing keeps your LLC in good standing and updates the state with your most current business information. The fee is $25, and you can submit it quickly through the LARA MiBusiness portal.
Things you need to know about Michigan LLCs
Before you wrap up your setup, it’s helpful to understand a few additional details about Michigan LLCs that could affect how you operate or expand your business.
Michigan Professional LLC (PLLC)
A Professional Limited Liability Company (PLLC) is a specific type of LLC designed for licensed professionals who offer regulated services. In Michigan, this structure is required if your business involves occupations that need state licensure or certification. This includes professions like:
- Doctors, dentists, and chiropractors
- Attorneys and accountants
- Architects, engineers, and surveyors
- Veterinarians, psychologists, and other licensed practitioners
A PLLC provides the same liability protection as a standard LLC but limits ownership to individuals licensed in that profession. You can file a Professional LLC through the MiBusiness Registry portal just as you would a standard LLC, but you’ll need to include proof of professional licensing when you submit your paperwork.
Obtaining a Certificate of Good Standing
A Certificate of Good Standing (also known as a Certificate of Status) is an official document issued by LARA that confirms your LLC is legally registered and compliant with all filing and fee requirements. You might need this certificate when:
- Opening a business bank account
- Applying for loans or financing
- Registering your LLC in another state (foreign qualification)
- Entering contracts with other businesses or government entities
You can easily request and download your Certificate of Status through the LARA website.
No publication requirement
Unlike some states, Michigan does not require new LLCs to publish a notice of formation in a local newspaper. In states like New York or Arizona, LLCs must publicly announce their creation for several consecutive weeks as part of the registration process. This rule can cost hundreds of dollars in publication fees.
Because Michigan has no such requirement, starting an LLC in Michigan is simpler, faster, and less expensive. You can complete your formation entirely online through LARA without needing to advertise your new business in print.
Start your Michigan LLC today
Starting an LLC in Michigan is an exciting step toward owning your future—and with the right tools, it’s easier than ever to get started. GoDaddy Airo for LLCs can help you name, register, and market your business, all in one place. Launch your Michigan LLC with GoDaddy today!
FAQ
How does an LLC affect my credit in Michigan?
Forming an LLC in Michigan keeps your personal credit separate from your business finances. Your personal credit won’t be affected by your LLC’s financial activity unless you personally guarantee a loan or credit line for the business. Over time, your LLC can build its own credit profile by opening a business bank account, applying for an EIN, and responsibly managing business credit cards or loans.
Do I need a lawyer to form an LLC in Michigan?
You don’t need a lawyer to form an LLC in Michigan. Most business owners complete the process themselves through the Michigan Department of Licensing and Regulatory Affairs (LARA) website. However, if your business has complex ownership structures or you want legal guidance on operating agreements, consulting a business attorney can be helpful.
Can I apply for a Michigan LLC online?
Yes, you can apply for your Michigan LLC online through the LARA Corporations Online Filing System. Filing online is the fastest and most convenient method. You’ll need to submit your Articles of Organization, list your registered agent, and pay the $50 filing fee. Once approved, you’ll receive confirmation that your LLC in Michigan is officially formed and ready to operate.
