How to Start an LLC in Michigan in 2026: Filing, Annual Statement and First-Year Cost

Michigan is one of the cheapest states to form and keep an LLC. The articles of organization cost $50, and the only yearly state filing is an annual statement due by February 15 for $25, a fee the current statute schedules to drop to $15 after September 30, 2027. The details that trip people up are elsewhere: Michigan calls the registered agent a "resident agent", an LLC formed late in the year skips its first statement, and a company that stops filing loses its good standing rather than being dissolved. This guide takes a first-time founder through each step and ends with a worked first-year budget. Fees and rules were checked against the Michigan Compiled Laws and Treasury material in October 2026.

Quick answer

To start an LLC in Michigan, file articles of organization with LARA's Corporations Division and pay $50. Name a Michigan resident agent at a registered office. Every year after that, file the annual statement by February 15 for $25 ($15 if paid after September 30, 2027, under the current statute).

• The name must include limited liability company, L.L.C. or L.C., and can't include corporation or inc.

• LLCs formed after September 30 skip the first February 15 statement

• Two years without statements costs you good standing; restoration $50 plus back fees

• No franchise tax; owners pay Michigan's 4.25% income tax on profits

• Sales tax license: $0 (free), through Michigan Treasury Online

What a Michigan LLC is and who should form one

A Michigan LLC is formed under the Michigan Limited Liability Company Act, Public Act 23 of 1993, found in sections 450.4101 to 450.5200 of the Michigan Compiled Laws. The company is a separate legal person, so its debts and lawsuits are its own and members aren't personally liable just because they own or manage it. The shield holds if you run the LLC as a separate business, with its own bank account, contracts signed in its name and records of money in and out.

For federal tax purposes, a one-owner LLC is a disregarded entity and a multi-owner LLC is a partnership unless you elect corporate tax treatment. Michigan follows that choice, and there's no Michigan franchise tax or minimum tax on LLCs, so most owners simply report the profit on their own Michigan returns.

An LLC suits contractors, cleaning and landscaping firms, salons, online sellers, consultants, short-term rental owners and small shops in Michigan. You don't need to live in Michigan or be a US citizen to be a member, but you need a Michigan resident agent. If your business actually runs in another state, forming in Michigan won't avoid that state's fees: you'd need to register there too. Form where you work.

Licensed professionals such as doctors, lawyers and accountants who want to practise through an LLC generally form a professional LLC (PLLC) under the same Act, with extra rules about who can be a member. Check with your licensing board before you file.

Michigan LLC at a glance (2026)

$50

Articles of organization

MCL 450.5101

$25

Annual statement

due February 15

$15

Annual statement after Sept 30, 2027

current statute

$5

Change of resident agent or office

Step 1: choose a name LARA will accept

MCL 450.4204 requires the name to contain "limited liability company", "L.L.C." or "L.C.", with or without periods. Michigan is stricter than some states in one respect: an LLC name can't contain "corporation", "incorporated", "corp." or "inc.", and it can't contain words that suggest a purpose the company isn't formed for, or words restricted by another statute, such as banking or insurance terms.

The name must also be distinguishable on LARA's records from other LLCs, corporations, limited partnerships and reserved or assumed names. The test is applied to the records, not to whether customers might confuse two businesses, so adding "the" or changing only the ending rarely works. Search LARA's business entity search before you file and try a few variations.

To hold a name while you sort out a lease or partners, reserve it for $25. Most founders skip the reservation and file the articles directly, which claims the name at the same time. The statute says that meeting the name rules doesn't by itself give you substantive rights to the name, so run a federal trademark search if you plan to build a brand. To trade under a different name, an LLC files a certificate of assumed name with LARA; our DBA guide explains how trade names work.

Step 2: appoint a resident agent

Michigan's name for a registered agent is "resident agent", and the address where the agent receives papers is the "registered office". MCL 450.4207 requires every LLC to keep both continuously. The agent receives lawsuits, legal notices and LARA's annual statement reminders.

Who can serve:

• An individual who lives in Michigan and whose business office is the same as the registered office, including you or another member.
• A Michigan corporation or LLC, which is how commercial agent companies serve.
• A foreign corporation or LLC authorized to do business in Michigan.

The agent's address and the registered office must be identical; you can't name an agent in Detroit with a registered office in Grand Rapids. The registered office needs a street address, and you can add a separate mailing address if it differs.

Resident agent options in Michigan

	You or another member	Commercial agent
State fee to appoint	Included in the $50 articles	Included in the $50 articles
Yearly cost	$0	About $50–$300 (market estimate)
Who can serve	Michigan resident only	Corporation or LLC authorized in Michigan
Address on public record	Your home or office	The agent's office
Change later	$5 statement of change	$5 statement of change

State fee to appoint

You or another member

Included in the $50 articles

Commercial agent

Included in the $50 articles

Yearly cost

You or another member

$0

Commercial agent

About $50–$300 (market estimate)

Who can serve

You or another member

Michigan resident only

Commercial agent

Corporation or LLC authorized in Michigan

Address on public record

You or another member

Your home or office

Commercial agent

The agent's office

Change later

You or another member

$5 statement of change

Commercial agent

$5 statement of change

The commercial agent range is our estimate from published provider pricing, not a state fee. The choice is about privacy and reliability: the registered office is public, and if no one is there when a process server calls, you can miss a lawsuit. A resigning agent's appointment ends 30 days after the resignation is filed, so replace one quickly. Our Michigan registered agent guide covers changes, resignations and service rules in detail.

Step 3: file articles of organization

MCL 450.4203 sets out what the articles must contain: the name; the purpose, for which a general statement that the company may engage in any lawful LLC activity is enough; the street address of the initial registered office and the name of the initial resident agent; a statement that the company is managed by managers, if it is; and a maximum duration, only if the company isn't perpetual. Anything else that is lawful can be added, but most small businesses keep the articles minimal and put their rules in an operating agreement.

Filing a Michigan LLC

1. 1

   Search the name

   Use LARA's business entity search to confirm the name is distinguishable and doesn't use 'corporation' or 'inc.'.

2. 2

   Open the MiBusiness Registry Portal

   File online through LARA's Corporations Division portal, or on the paper articles of organization form (CSCL/CD-700) by mail.

3. 3

   Enter the purpose, office and agent

   Use the general purpose clause, give the registered office street address and name the resident agent at that address.

4. 4

   Say who manages

   Tick manager-managed only if managers will run the company; otherwise it is member-managed.

5. 5

   Pay $50

   LARA offers expedited handling for an extra fee if you need the LLC on a fixed date; check the current expedite options before paying.

   Tip: Add an email address so annual statement reminders reach you, not just the registered office.

No publication, no annual report. Michigan has no newspaper publication requirement for LLCs, and an LLC files an annual statement, not the longer annual report that for-profit corporations file by May 15.

Why filings come back. The usual reasons are a name that isn't distinguishable or contains "inc." or "corporation", a registered office that doesn't match the agent's address, and a PO box given as the registered office. Correct the item and resubmit.

Step 4: EIN, operating agreement and bank account

Once LARA files your articles, apply to the IRS for an employer identification number. It costs Free ($0) and takes minutes online; see our EIN guide. You'll need it to open a business bank account and to register with Michigan Treasury.

Michigan doesn't ask you to file an operating agreement, but the Act lets it override many default rules on management, profit splits, new members and exits. Without one, the defaults apply. A single-member LLC should still have a short agreement, because banks ask for it and courts look at it when deciding whether the company is genuinely separate from you.

Open the bank account in the LLC's exact legal name with the EIN, and run every business payment through it. Mixing personal and business money is the most common reason a court looks past an LLC's liability shield.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States don't file beneficial ownership information reports, so a new Michigan LLC has no BOI filing (current position: Not required for US-formed companies).

Step 5: register for Michigan taxes and local requirements

Sales tax license. If you sell taxable goods at retail, register in Michigan Treasury Online (MTO) for a sales tax license. It's $0 (free). Michigan's sales tax is a flat 6% statewide with no county or city add-ons, which makes pricing simple. Returns are due the 20th of the month after the period, and every sales tax account also files an annual return by February 28. Our Michigan sales tax guide covers what's taxable, use tax and filing frequency.

Employer accounts. If you hire, add income tax withholding in MTO and register with the Unemployment Insurance Agency. Check the state's workers' disability compensation coverage rules before your first hire, and see how to hire your first employee for the federal steps.

Local requirements. Michigan has no statewide general business license. Some cities and townships require a local business licence or registration for certain activities, and many require an assumed name certificate or zoning approval before you open a storefront. Ask the clerk's office where you operate.

The annual statement and the 2027 fee change

What it is. MCL 450.4207 requires every Michigan LLC to file an annual statement by February 15 that names its resident agent and gives its registered office address. It's a one-page filing with no financial information, and LARA mails a pre-printed form to the registered office in advance. You can file it online.

The first-year exemption. An LLC formed or authorized after September 30 doesn't file on the first February 15 after formation. That means an LLC formed on October 9, 2026 files nothing in February of the next year and makes its first annual statement the February after that. An LLC formed in March files its first statement eleven months later.

The fee and the scheduled change. The current text of MCL 450.5101 sets the annual statement fee at $25 through September 30, 2027 and $15 when paid after that date. For most LLCs, the statement due February 15, 2028 would be the first at the lower fee. Michigan has extended the higher fee before by moving that date, so check LARA's fee schedule before you pay.

If you stop filing. Unlike many states, Michigan doesn't automatically dissolve an LLC for missed statements. Under MCL 450.4207a, once an LLC has gone two consecutive years without filing, the state sends a notice and gives it 60 days to file every missing statement and pay the fees. If it doesn't, the LLC is no longer in good standing. It still exists and can trade, but it can't get a certificate of good standing, its name becomes available to other businesses and LARA will accept only a restoration filing from it. Restoration costs $50 plus each missed statement and fee.

A Michigan LLC's calendar

Formation

Articles filed; $50 paid; EIN obtained

Before first sale

Free sales tax license in Michigan Treasury Online

the 20th of the month after the period

Sales tax return for the previous period

February 15 each year

Annual statement, $25 (skip the first if formed after September 30)

February 28

Annual sales tax return

After September 30, 2027

Annual statement fee scheduled to fall to $15

How a Michigan LLC is taxed

Income tax. A single-member LLC's profit goes on the owner's Michigan return, and a multi-member LLC files a federal partnership return and passes income through to members. Michigan taxes individuals at a flat 4.25% for the 2026 tax year; Treasury reviews the rate each year under a statutory formula tied to revenue growth. There's no separate state tax on the LLC itself unless you elect corporate treatment.

City income tax. A number of Michigan cities, including Detroit, levy their own income tax on residents and on people and businesses earning income there. If you live or operate in one of them, register with the city and include LLC profit on the city return.

Self-employment and S corporation status. Members who work in the business owe federal self-employment tax. An S corporation election can reduce it once profits justify a salary; read LLC vs S corp and how to pay yourself from an LLC before you decide.

What it costs: a worked first-year budget

The table shows three realistic Michigan LLCs. State fees are statutory; the agent line is an estimate.

What the table leaves out. City income tax, local permits for food service or signs, insurance and tax preparation. They depend on where you operate and what you do.

The long run. Over five years, a Michigan LLC formed in early 2026 pays the $50 articles fee, one annual statement at $25 in February 2027 and, if the scheduled change takes effect, $15 a year after that. Compare a Washington LLC's $70 yearly report in our Washington LLC guide.

Worked examples

A Grand Rapids web designer. Aisha files her articles online in March 2026, names herself as resident agent at her studio and pays $50. She gets her EIN that afternoon. She sells only services, so she needs no sales tax license, but Grand Rapids levies a city income tax, so she registers with the city and reports her LLC profit there. Her first annual statement is due February 15 next year.

An Ann Arbor gift shop that reserved its name. Ben reserves "Huron Valley Makers L.L.C." for $25 while he signs a lease, then files his articles. Before opening he registers in Michigan Treasury Online for a free sales tax license and charges 6% on taxable sales. He files monthly sales tax returns and the annual return each February.

A Detroit café formed in October. Rosa forms her LLC on October 9, 2026 and uses a commercial resident agent. Because she formed after September 30, she has no annual statement in February 2027; her first is due February 15, 2028, when the current statute sets the fee at $15. She registers with the City of Detroit's income tax office as well as Treasury.

Michigan LLC launch checklist

0/9

• Name searched; includes LLC, L.L.C. or L.C.; no 'inc.' or 'corporation'
• Resident agent chosen, with matching Michigan registered office
• Articles of organization filed and $50 paid
• EIN obtained from the IRS
• Operating agreement signed by all members
• Business bank account opened in the LLC's name
• Free sales tax license in Michigan Treasury Online (if selling taxable goods)
• City income tax and local licence checks where you operate
• Calendar reminder: annual statement every February 15

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Common mistakes and how to fix them

Putting "Inc." in an LLC's name. MCL 450.4204 forbids it. Choose a name with "LLC", "L.L.C." or "L.C." instead.

A registered office that doesn't match the agent. The agent's business office and the registered office must be the same address. Fix it with a $5 statement of change.

Filing an annual statement you don't owe yet. If you formed after September 30, you skip the first February 15. You haven't missed anything.

Assuming missed statements don't matter because there's no dissolution. Losing good standing means no certificate of good standing for a bank or contract, and someone else can take your name. Restoration costs $50 plus all back fees.

Paying look-alike notices. LARA has warned about private mailers that charge many times the state fee to file the annual statement. File it yourself for $25.

Forgetting city income tax. Treasury doesn't collect it for most cities. Register with your city if it levies one.

Official links

• LARA Corporations DivisionArticles of organization, annual statements, entity search
• MiBusiness Registry Portal (online filing)File articles and annual statements
• Annual Reports and Annual StatementsDue February 15
• Michigan Treasury OnlineFree sales tax license and withholding
• IRS — Apply for an EINFree

Out-of-state LLCs doing business in Michigan

An LLC formed elsewhere that transacts business in Michigan applies for a certificate of authority for $50, names a Michigan resident agent and files the same February 15 annual statement. If you live and work in Michigan, forming here in the first place avoids paying two states.

What to do next

Check your name with the LLC name checker, choose your resident agent, then file your articles and get your EIN the same day. Use the startup cost calculator to fold the $50 filing and agent costs into your opening budget, and set a yearly reminder for February 15.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in Michigan?

LARA's Corporations Division charges $50 to file articles of organization under MCL 450.5101. A name reservation, if you want one, is $25. From the next year you pay $25 for each annual statement, scheduled to fall to $15 for statements paid after September 30, 2027. The sales tax license from Treasury is free.

When is the Michigan LLC annual statement due?

By February 15 each year. An LLC formed after September 30 skips the first February 15 after it was formed, so an LLC formed in October 2026 files its first statement in February two years later. The statement confirms the resident agent and registered office and costs $25 under the current fee schedule.

What happens if a Michigan LLC stops filing annual statements?

Under MCL 450.4207a, after two consecutive years without a statement the state sends a notice, and you have 60 days to file the missing statements and pay the fees. If you don't, the LLC is no longer in good standing: it can't get a certificate of good standing and its name becomes available to others. Restoration costs $50 plus each missed statement.

Can I be my own resident agent in Michigan?

Yes, if you live in Michigan and your business office is at the registered office address. Michigan calls the registered agent a resident agent. A Michigan corporation or LLC, or a foreign company authorized in Michigan, can also serve. Changing the agent later costs $5.

Does Michigan charge an annual franchise tax on LLCs?

No. Michigan has no franchise tax or minimum tax on LLCs. A single-member LLC is taxed with its owner and a multi-member LLC as a partnership, so profits go on the owners' returns at Michigan's flat 4.25% individual rate, plus any city income tax where you live or work. The only yearly state fee is the $25 annual statement.

Do I need a Michigan sales tax license for my LLC?

Only if you sell taxable goods at retail in Michigan. The license is free and you register in Michigan Treasury Online. Michigan's sales tax is a flat 6% with no local add-ons, and returns are due the 20th of the month after the period, plus an annual return by February 28.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.MCL 450.5101 — LLC fees — Michigan Compiled Laws (text via FindLaw) · accessed 9 October 2026
2. 2.MCL 450.4203 — Articles of organization — Michigan Compiled Laws (text via FindLaw) · accessed 9 October 2026
3. 3.MCL 450.4204 — LLC names — Michigan Compiled Laws (text via FindLaw) · accessed 9 October 2026
4. 4.MCL 450.4207 and 450.4207a — Resident agent, annual statement and good standing — Michigan Compiled Laws (text via FindLaw) · accessed 9 October 2026
5. 5.Annual Reports and Annual Statements — Michigan Department of Licensing and Regulatory Affairs · accessed 9 October 2026
6. 6.4.25% income tax rate for individuals and fiduciaries in 2026 tax year — Michigan Department of Treasury · accessed 9 October 2026
7. 7.Sales and Use Tax — Michigan Department of Treasury · accessed 9 October 2026
8. 8.Get an employer identification number — IRS · accessed 9 October 2026
9. 9.Beneficial Ownership Information — FinCEN · accessed 9 October 2026