We’ve put together a step by step guide on how to start an LLC in Michigan. Starting Michigan LLC is easy if you follow the correct procedure of forming an LLC.
If you are searching to creating an LLC in Michigan, then congratulate yourself as you’ve reached the perfect webpage. Limited Liability Company (LLC) is a legal business structure in which neither the members nor the owners are liable for the company debts. The members & owners liability is limited to the amount they invested in the company (Investment)
Starting up a limited liability company in Michigan involves several steps that should be performed with much care & attention. There are some agencies that charge $100 to $250 extra to perform the whole procedure on your behalf. I recommend saving money and doing it yourself by following the mentioned steps carefully. Let us not waste any more time in the introduction and move further to the subject.
How to Start an LLC in Michigan?
Like the other states of the USA, Michigan also has certain laws & requirements to comply with to start a limited liability company. I have listed the whole process into steps for you to understand it better.
Choosing Name for your LLC
Like any other state, Michigan also has a law according to which the name of the LLC should include “limited liability company.” If you have already thought a good name, then just add the L.L.C or LLC at the end of it, and you are done. Also, make sure the name you propose should be different from the already registered business companies. If you are worried that your name might already be registered by any other company then just check your LLC’s name —[HERE]
If you want to use a short name in your business practices like MTS & HTC, then you are required to register that name in the Michigan Department of Licensing and Regulatory Affairs. You can mail the certificate of the short name by mail to the Michigan Department of Licensing & Regulatory Affairs, which will cost you about $25.
Find a Registered Agent
A registered agent is an individual or corporation which acts on behalf of the company. Any individual who is a resident of Michigan or a corporation who has the authority to do business in Michigan can become a registered agent for an LLC. Also, the registered agent must have a real street address in Michigan. You can make yourself the registered agent of your LLC if you comply with all the requirements to be an agent.
Filing the Articles of Organization
If you are starting an LLC in Michigan, then the first important step, to begin with, is to file the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs. The cost of filing this document is about $50, and you can file it online as well by postal mail. You are required to fill up important information like the company’s name, type, duration of existence, LLC signature, and other relevant information related to the LLC.
Creating an Operating Agreement
Like other states of the US, Michigan also does not require an Operating Agreement. But most of the people file this document as it has many advantages. An Operating Agreement is a private document of a limited liability company that has private information like the rights & responsibilities of members, investments, profits, and other important information. It is basically the functioning of the LLC in writing, and in case of its absence, the Michigan Department of State governs the LLC.
Michigan Tax Requirements
After you are done with setting up your new LLC in Michigan, you must comply with the state’s tax & regulatory requirements for the smooth functioning of your LLC. To be eligible for filing tax, the company must have an EIN/TAX number. Without EIN number, you cannot even hire employees. Also, your company requires a business license to do business in Michigan.
The company is also entitled to file sales, employees, and other types of tax (as per the company’s work). Besides, you might need to register your company to Michigan Department of Treasury to file taxes. You can register for it online or even apply for it by mail.
Note: The LLC is required to file an annual report with the Department of Licensing and Regulatory Affairs.
Neglecting any document will result in a sudden dissolution of the company.
So this is everything that you need to know to start a limited liability company in Michigan. The procedure to start a limited liability company in any state is quite similar but has a difference in their authority departments & offices. Please read the guide on creating an LLC in new york.
I request you to read the points again carefully as it will help you understand each step better. . I believe that this comprehensive article helped you and satisfied all your doubts related to Michigan LLC. But if you have any issue related or relevant to the open an LLC , then please make a comment below, and I or someone from our team will certainly reply to you with a helpful answer in no big time. Also, please share this piece of information with friends or people who might find this relevant or helpful.
What is the sole reason behind starting an LLC company in Michigan?