Ready to Form Your LLC?
When forming a business in Michigan, it’s important to evaluate the legal and regulatory factors that will impact how your company operates. Choosing the appropriate business structure – whether an LLC, corporation, or partnership – affects everything from tax treatment to liability protection and day-to-day management. Michigan’s business-friendly environment includes access to major trade routes, competitive real estate costs, and state-backed programs that support entrepreneurs and small businesses.
The state also offers various benefits, such as industry-specific tax credits, workforce development grants, and a balance of opportunities in both urban centers and rural communities. Working with legal and financial professionals can help ensure your business is set up properly from the start and positioned for long-term success.
Navigating Michigan's business landscape is easier with the right support. LLC Attorney provides step-by-step guides, legal resources, expert tools, and Business Success Advisors to help both new and established businesses succeed.
Forming an LLC in Michigan provides entrepreneurs with liability protection and the ability to customize how their business is managed. To legally establish an LLC, you must file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division.
Michigan requires LLCs to file an annual report – called an Annual Statement – starting the year after formation, to keep the business in good standing. Maintaining clear internal records and staying current with state filings is essential for long-term compliance.
Starting your Michigan LLC with us is simple and efficient. With same-day LLC filing, we process your LLC formation within 24 hours. Our services are designed to protect your privacy in accordance with applicable laws and begin at $99 plus required state filing fees (pricing subject to change). In Michigan, the Articles of Organization filing fee is $50. Each of our packages includes a Michigan-specific operating agreement, a business address, a name availability check, payment of the state filing fee, registered agent service, and scanning for up to five business-related mail items per year.
We also assist both U.S. and international clients with opening online business bank accounts at no additional cost.
While some providers charge hidden fees or take longer to process your filing, we focus on delivering speed, clarity, and personalized support. Our experienced team has helped thousands of business owners through the formation process and is available to assist with any unique needs or questions.
Each package includes mail scanning for up to five documents annually, not including junk mail or standard communications received as part of registered agent service.
Read on to learn how to form your own LLC in Michigan, from the basics to how it helps protect you.
A Limited Liability Company (LLC) is a popular business structure in Michigan and across the United States, designed to give small business owners a balance of liability protection and operational flexibility. It blends elements of both corporations and sole proprietorships or partnerships.
Forming an LLC in Michigan creates a legal entity that is separate from its owners. This means that the LLC, not the individual members, is generally responsible for business debts, lawsuits, and other liabilities, subject to certain exceptions such as personal guarantees or piercing of the corporate veil. As a result, your personal assets, such as your home or savings, are typically protected if the business faces financial or legal trouble.
Forming a Limited Liability Company (LLC) in Michigan provides several advantages for entrepreneurs, particularly in terms of liability protection, tax treatment, and management flexibility.
One of the most important benefits is personal asset protection. A Michigan LLC establishes a legal separation between your business and your personal finances. This means your home, savings, and other personal assets are typically not at risk if your business faces debts or legal claims—an important distinction from sole proprietorships or general partnerships.
LLCs in Michigan also offer a reasonable degree of privacy. While basic business information is part of the public record, the state does not require detailed personal disclosures from LLC owners, offering more confidentiality than some other states.
On the tax side, Michigan LLCs are typically treated as pass-through entities. This allows income to flow directly to the owners and be reported on their individual tax returns, avoiding the double taxation that can affect corporations. Many business owners find this structure provides both tax efficiency and credibility when dealing with customers, banks, or partners.
There are, however, responsibilities to consider. Michigan LLCs must file an annual statement and pay a small filing fee each year to remain in good standing. While LLCs have fewer formalities than corporations, they still require internal recordkeeping, a defined management structure, and ongoing compliance with state regulations.
Starting and maintaining an LLC in Michigan involves a few important expenses that business owners should include in their planning.
Michigan offers some of the most affordable filing fees in the country, but it’s important to consider both the initial and ongoing compliance costs when forming and operating your LLC.
One of the key advantages of forming an LLC in Michigan is the flexibility in how your business is taxed. By default, Michigan LLCs benefit from pass-through taxation, meaning the business itself does not pay federal income tax. Instead, profits and losses pass through to the members and are reported on their personal tax returns. Single-member LLCs are treated as sole proprietorships, and multi-member LLCs are taxed as partnerships unless a different classification is chosen.
At the state level, Michigan does not impose a corporate income tax on LLCs that are taxed as pass-through entities. However, if your LLC elects to be taxed as a corporation, it may be subject to Michigan’s Corporate Income Tax (CIT), which, as of 2025, is a flat 6.0% on taxable income (subject to change based on current tax law).
LLC members are also responsible for federal self-employment taxes on their share of business income. To reduce these taxes, some LLCs choose to be taxed as S corporations, which allows owners to pay themselves a reasonable salary (subject to payroll taxes) and take additional profits as distributions, which are taxed differently.
While Michigan’s tax structure is generally favorable for LLCs, it’s important to evaluate your specific business needs and goals. Consulting a tax professional can help ensure that you select the most tax-efficient classification and stay compliant with both federal and state requirements.
According to state records, 148,508 new business applications were filed in Michigan in 2023. This figure places Michigan 24th nationally in business applications per capita and highlights the state’s continued support for new business growth.
Small businesses are a cornerstone of Michigan's economy, comprising 99.6% of all businesses and employing 1.9 million individuals, which accounts for nearly half of the state’s workforce.
Job creation has been another area of strength. From March 2022 to March 2023, small businesses were responsible for a net gain of 135,429 jobs, contributing more than 80% of the state’s total employment growth during that time.
Michigan has also made targeted investments in economic equity. In 2023, the Michigan Economic Opportunity Fund launched a $10 million microloan program for women- and minority-owned microbusinesses, providing funding of up to $50,000 per business to promote inclusive entrepreneurial growth.
An operating agreement is a critical document for Michigan LLCs that defines how the business is managed and how responsibilities, profits, and decisions are shared. Although not required by Michigan law, it’s highly recommended to prevent internal disputes and strengthen legal protections.
This agreement typically outlines ownership structure, voting rights, profit distribution, and the process for adding or removing members. It also allows your LLC to customize or override default state rules to better suit your business.
Having all members sign the operating agreement ensures mutual understanding and provides a strong foundation for long-term success.
An Employer Identification Number (EIN) serves as the federal tax ID for your Michigan LLC. Issued by the IRS, it is required for a wide range of business activities, including opening a bank account, hiring employees, and filing federal tax returns. If you have a Social Security Number (SSN), you can apply for an EIN online through the IRS website. If you do not have an SSN, the application must be submitted by fax or mail, with fax being the faster option. For U.S.-based clients who choose our EIN service, we typically process the EIN application on the same day, subject to IRS processing times. For international clients, we fax the application the same day we receive the necessary information.
Should an LLC have its own bank account? Yes. A separate business bank account is essential for protecting your personal assets. It keeps personal and business finances distinct, which strengthens your LLC’s liability protection and supports compliance in the event of an IRS audit or legal issue.
How to open a business bank account for a Michigan LLC? You’ll need your Articles of Organization, EIN, operating agreement, and information about the LLC’s owners or managers. We collect all of this during the intake process and can assist with your banking setup to make it easier.
Can you transfer money between a personal and business account? It’s fine to transfer money between accounts, but proper documentation is key. Deposits into the business should be recorded as capital contributions or loans. Withdrawals may be classified as distributions, payroll, reimbursements, or loan repayments. We provide templates and guidance to help you document each transfer clearly and correctly.
Effective planning is crucial in business, where the risks and rewards are significant. LLC Attorney's approach to business formation services extends well beyond simple LLC establishment. We ensure our clients receive more than just a certificate of formation. Our services encompass comprehensive asset protection, registered agent services, and estate planning, providing significant value beyond the fundamental legal structure. We take pride in building lasting relationships with our clients, supporting them well beyond the initial setup to help maintain ongoing compliance and success.
