Best LLC Formation Services in Michigan

Michigan has a 6% state sales tax with no local add-ons, which keeps compliance simpler than states like Colorado or Louisiana where rates vary by city and parish.

There is no franchise tax in Michigan. Compare that to neighboring Illinois, where LLCs pay an annual franchise tax that was $75 per year until its recent phase-out, or Ohio's Commercial Activity Tax on gross receipts.

Michigan does not offer anonymous LLCs. Your organizer's name and your Resident Agent's name both appear on the public record filed with LARA. If privacy is your top concern, you are better off forming in New Mexico or Wyoming.

Name reservations in Michigan last 180 days for $25, which is generous compared to most states that cap reservations at 120 days. This gives you extra time to finalize your operating agreement before you officially file.

1. Appoint a Resident Agent immediately. Michigan requires a Resident Agent (their term for registered agent) who is either an individual residing in the state or a business entity authorized to operate there. The agent must have a physical street address in Michigan, not a P.O. box.
2. Get your EIN from the IRS. You need an Employer Identification Number before you can open a business bank account or hire employees. This is free and takes about 15 minutes online at irs.gov.
3. Draft an operating agreement. Michigan does not legally require one, but banks will ask for it when you open a business account, and it protects your limited liability status if you are ever sued.
4. File your Annual Statement by February 15 each year. The fee is $25, and a $50 late penalty is added if you miss the deadline. If your LLC was formed after September 30, your first statement is not due until the second February 15 after formation.
5. File your BOI report with FinCEN. LLCs formed in 2024 must submit a Beneficial Ownership Information report within 90 days of formation. LLCs formed in 2026 must file within 30 days. Existing LLCs formed before 2024 have until January 1, 2026.
6. Register for Michigan taxes if applicable. If you sell taxable goods or services, register for a sales tax license through Michigan Treasury Online. There is no general state business license, but check your city and county for local permits.

• $50 Late Penalty on Annual Statements - Miss the February 15 deadline and LARA tacks on $50, effectively tripling the $25 filing cost.
• $50 Expedited Processing Fee - Standard processing takes 7-10 business days, but 24-hour turnaround costs an extra $50 on top of the base filing fee.
• $50 Reinstatement Fee Plus Back Fees - If your LLC loses good standing for missing annual statements, you owe $50 plus every delinquent $25 annual report fee to get reinstated.
• $10 Certificate of Good Standing - You will need this for opening bank accounts or registering as a foreign LLC in another state, and it costs $10 per copy from LARA.