Michigan LLC Cost
Forming an LLC in Michigan costs $50—the state fee to file the Michigan Articles of Organization. You’ll also need to pay a $25 annual report fee every year to keep your LLC active. In addition to these basic expenses, you might need to pay for business licenses, insurance, and other costs that come with running a business. Let’s go over the most common costs associated with starting a Michigan LLC.
What You’ll Find In This Article:
- Michigan LLC Formation Filing Fee
- Michigan Annual Report Fee
- Michigan Registered Agent Fee
- Michigan State Business License Fee
- Michigan Professional Licensing Fees
- Local Business License Fees in Michigan
- Optional LLC Fees in Michigan
- Business Insurance Premiums
- Cost to Register a Foreign LLC in Michigan
Michigan LLC Formation Filing Fee: $50
Michigan’s LLC formation fee is on the low end at $50. To bring your Michigan LLC into existence, you’ll need to pay this fee and submit a completed Michigan Articles of Organization form to the MI Department of Licensing and Regulatory Affairs (LARA). You can submit this form online, by mail, or in person. Michigan processes mailed filings up to four weeks after receiving them and online filings up to two weeks after receipt.
The state offers expedited processing for an additional fee:
Michigan Annual Report Fee: $25
Michigan LLCs need to file an annual report (called an Annual Statement) and pay a modest annual report fee—$25. Filing your annual report ensures that the state has the correct information for your business and is necessary to keep your LLC in good standing. The Michigan Corporations Division will mail a pre-filled annual statement form to your registered agent 90 days before it is due, which you can return by mail. Or you can file online via the LARA Corporations Division Online Filings System.
The annual report is due by February 15th, starting the year after you form your business. However, if your LLC was formed after September 30th, you don’t need to file an annual report in the upcoming year. Meaning that if you formed your LLC on October 1st, 2022, you don’t need to file an annual report until February 15th, 2024.
Check out our guide to the Michigan annual report.
Michigan Registered Agent Fee
According to Michigan law, you must include the name and address of your resident agent (aka registered agent) in your Articles of Organization. Your registered agent is the person or company designated to accept legal mail (including lawsuits) on behalf of your LLC. Michigan registered agents must have a physical address in Michigan where they are available during standard business hours year-round. So if you plan on ever taking a vacation, you might not want to appoint yourself as your own registered agent.
A professional registered agent service can take this burden off your hands and help you protect your privacy—since you can put their address on the public record instead of yours. Northwest’s fee for registered agent service is $125/year, and that fee never goes up.
Michigan State Business License Fee
Michigan doesn’t have a universal state business license, but that doesn’t mean you won’t need to pay any fees for licenses and permits. Many businesses need some kind of license before they can begin operations—whether that’s professional certification, a building or zoning permit, or a city business license. Check out the Michigan State License Search to learn more about state-issued licenses.
Michigan Professional Licensing Fees
If your business requires training and oversight to be performed safely—whether you’re a tattoo artist, dentist, or mobile food vendor—you’ll need professional certification from the board that regulates your industry in Michigan. You can find out how to apply for a professional license in your industry by visiting the MI Bureau of Professional Licensing web page.
Local Business License Fees in Michigan
You should also check with your local government and see if you need any local licenses or permits. Some municipalities in Michigan require all businesses to get a local business license, whereas others only require a license for certain industries. Selling alcohol? You’ll need a local liquor license. Working out of your home? You might need a zoning permit.
Optional LLC Fees in Michigan
We’ve gone over the most essential costs of starting a Michigan LLC, but here are some other costs that might come up:
If you’re not ready to start your LLC just yet, but you want to make sure your preferred business name is available when you do, you can pay $25 to reserve your name by filing an Application for Reservation of Name with the Corporations Division. This form can be filed online, by mail, or in person and will reserve your preferred business name for 180 days. Before you reserve your business name, you should search for the name using the Online Filing System to make sure the name isn’t already taken.
Michigan Certificate of Assumed Name
If your business wants to operate under an assumed name (also called a DBA) you’ll need to file a Certificate of Assumed Name with the Corporations Division, which costs $25. An assumed name is like a nickname for your business—for example, Carol Hancock Musical Instruments LLC could use the assumed name Carol’s Music Shop.
Certified Copies of Business Documents
Getting a certified copy of a business document in Michigan costs $16. (For documents over 6 pages long, add $1 for each additional page.) Some businesses keep a certified copy of their Articles of Organization—plus any amendments—with their business records, just in case. You might need to show certified copies to a bank, investor, or state agency.
Find out how to get a certified copy of your Michigan Articles of Organization.
Michigan Certificate of Good Standing
Getting a Certificate of Good Standing in Michigan costs $10. Issued by the state, this certificate proves that your LLC is active and has filed all necessary state reports. The fastest way to obtain a Certificate of Good Standing is through the LARA Online Filing System. Online processing takes around 3 business days after receipt. You will probably need a Certificate of Good Standing if you want to register your business in another state.
Here’s how to get a Michigan Certificate of Good Standing.
Business Insurance Premiums
Plan on hiring employees? Then you’ll most likely need to pay for workers’ compensation insurance. Workers’ comp helps to cover the cost of lost wages, medical bills, and rehabilitation services for employees who have been injured on the job. As an employer, you can either buy workers’ comp insurance through a private insurance company or self-insure (with approval from the state). Workers’ comp rates vary depending on the risk involved in the workers’ job. In Michigan, the average rate for workers’ comp is $0.16 per $100 of payroll on the low end, $11.04 per $100 of payroll on the high end.
You may also consider buying additional business insurance—such as liability insurance— to protect your business from financial loss due to lawsuits, natural disasters, vandalism, and other risks.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in Michigan?
To register as a foreign LLC in Michigan, you’ll need a Certificate of Authority from the Michigan Corporations Division, which costs $50. A foreign LLC is simply an LLC that was formed outside of Michigan. Foreign LLCs will also need to file the Michigan annual report, just like domestic Michigan LLCs.