Start a Business in Michigan
Corporate Compliance by Local Corporate Guides®
Starting a business in Michigan can and should be easier than you think. You file simple forms with the Department of Licensing and Regulatory Affairs, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in Michigan, along with great filing instructions on the quickest and cheapest ways to start your business in Michigan.
How to Start a Business in Michigan
You file articles of incorporation for a Michigan corporation or articles of organization for a Michigan LLC with the MI Department of Licensing and Regulatory Affairs.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Michigan showing your approved Michigan business.
Opening a business banking account under your new Michigan business name should be easy with these two items.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the State of Michigan Department of Treasury. We provide all these links in your online account.
If your business trade requires a license, you’ll have to apply for a license with the LARA Licensing Division. This division regulates multiple MI licensing boards and agencies. Licensing quick links and contact details are in your online account.
Some local cities or counties have a general license, but most don’t.
You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in Michigan yourself, you can just hire us as your Michigan registered agent, and you’ll instantly have the Michigan LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Michigan corporation or form a Michigan LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Michigan registered agent service.START YOUR MICHIGAN BUSINESS TODAY
Michigan LLC vs Corporation:
Large business owners like the well-established, defined management structure of a corporation. Also, having the ability to sell stock helps attract top investors. LLCs are popular for small to medium-sized business owners. They’re easier to maintain and have fewer annual requirements. Plus, LLCs offer flexible management structures.
But, what about Michigan? Any pros and cons for a Michigan LLC vs a Michigan corporation?
In terms of initial fees and privacy, Michigan LLCs have a slight advantage over Michigan corporations. The cost of filing the Articles of Organization is $50 compared to $60 for the Articles of Incorporation. Plus, if your corporation decides to authorize more than 60,000 shares, your initial fee will increase. Both entities are required to file annual reports ($25); however, only corporations need to list director, president, secretary, and treasurer names and addresses. LLCs don’t need to include member/manager information.
During tax season, Michigan LLCs and corporations will be treated fairly equally. The rates for both corporate and personal income taxes are flat rates—6.25% and 4.25%. So, although traditional corporations will be taxed twice—first on the state level, then through shareholder returns—your total taxes won’t get too big, even if you start generating a large income. Michigan also imposes a Personal Property Tax on all commercial and industrial personal property. However, in 2014, the state began phasing out this tax and will be fully eliminated by 2023. Currently, if your property owned within the state has a total worth that’s below $80,000, then your total tax due will be $0.
If you want a corporation, you file Michigan Articles of Incorporation:
The Michigan articles of incorporation cost $60 with the Michigan Department of Licensing and Regulatory Affairs.
We custom draft your Michigan articles of incorporation. The requirements for Michigan corporations are:
- The Michigan Corporation must have a corporate ending such as INC, Incorporated, Corporation or a different variety.
- The Michigan corporation name must be different than already registered Michigan corporations.
- A general purpose is sufficient but you may include a specific purpose.
- The number and class of shares the Michigan Corporation is authorized to issue.
- The name and office address of the registered agent in Michigan.
- The name and address of the incorporator(s) of the Michigan Corporation.
- Optional provisions.
- The duration of the corporation should be stated in the Articles only if not perpetual.
- The incorporation is effective when filed unless you state a future effective date.
- Each Michigan incorporator must sign and date the articles of incorporation.
- The name and phone number of the preparer of the Articles of Incorporation form.
- Name of person or organization remitting fees.
Michigan does not require original signatures on new MI corporation filings. The filed document will be mailed to the address you provide. If you fax documents for filing, LARA will fax back the confirmation.
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If you want a LLC, you file Michigan Articles of Organization:
- The business name must have a LLC ending or variation of it.
- The Michigan company name must be different than already registered Michigan companies.
- The purpose of the Michigan Limited Liability Company may be general, stating a specific purpose is optional.
- State the duration of the Michigan LLC if not perpetual.
- The Michigan registered agent name and physical address.
- Optional provisions – Michigan LLCs are member-managed unless the Articles of Organization state the LLC is manager-managed. If the limited liability company is to be manager-managed, include a statement to that effect in the optional provision section.
- The Michigan organizer must sign and date the form.
- Preparer’s name and phone number.
- Name of person or organization remitting fees.
Michigan does not require original signatures on new MI LLC filings. You’ll get a certificate mailed back to you after the state approves your filing. If you fax filed, LARA will fax back the filing.