Michigan LLC Overview
Michigan offers excellent value with a $50 filing fee and $25/year annual statement. The Great Lakes State combines affordable LLC costs with a major manufacturing economy and growing tech sector.
Michigan's economy is anchored by automotive (Detroit is Motor City), technology, healthcare, agriculture, and tourism. Detroit is experiencing a renaissance with autonomous vehicle development and cybersecurity.
For non-residents, Michigan's $50 filing and $25/year are very competitive. The 4.25% income tax is moderate. Arizona ($50, $0/year) is slightly cheaper ongoing.
Michigan LLC Costs and Fees
All fees below are sourced from the Michigan Secretary of State fee schedule.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization (online) | $50 | One-time (at formation) |
| Annual Statement ($25/year) | $25/year | February 15 each year |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 4.25% flat rate | On Michigan-sourced income |
| Sales tax | 6% state | On taxable goods/services |
| Amendment | $25 | When needed |
| Certificate of Good Standing | $10 | When needed |
Great Lakes value
Michigan is one of the best-value states. $50 filing + $25/year = $175 over five years. Combined with a growing tech economy, Michigan punches above its weight.
Step-by-Step: How to Form a Michigan LLC
Step 1: Choose your LLC name
Search for available names on the Michigan Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Ensure the name is distinguishable from existing entities on file.
Step 2: Appoint a registered agent
Every Michigan LLC must have a registered agent with a physical street address in Michigan. The agent must be available during normal business hours to accept legal documents on behalf of the LLC.
Step 3: File Articles of Organization
File online through the Michigan Secretary of State. The filing requires:
- LLC name with designator
- Registered agent name and Michigan address
- Principal office address
- Purpose of the LLC
- Duration
- Name and address of each organizer
- $50 filing fee
Step 4: Create an Operating Agreement
While not always legally required in Michigan, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.
Step 5: Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is your LLC's tax ID number, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN.
Step 6: Register for Michigan taxes (if applicable)
If you will sell taxable goods or services in Michigan, register with the Michigan Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.
Annual Compliance Requirements
- Annual statement: Due February 15. Fee: $25. Filed with LARA.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs.
- Michigan income tax: 4.25% flat on MI-sourced income.
- Sales tax: 6% statewide.
- Registered agent: Maintain agent with MI address.
- FinCEN BOI Report: Required.
Michigan Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| State income tax | 4.25% flat | Pass-through to members |
| Franchise tax | $0 | No franchise tax |
| Sales tax | 6% | Flat statewide |
| Annual statement | $25/year | Due February 15 |
Michigan's $25/year annual statement is one of the cheapest. Combined with no franchise tax and moderate income tax, excellent value for MI businesses.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Online filing | 3-7 business days | $0 |
| Expedited | Same day | $50 |
| Paper filing | 7-14 business days | $0 |
Same-day expedited available for $50 through LARA.
Pros and Cons of a Michigan LLC
Advantages
- Low $50 filing fee
- Very cheap annual statement ($25/year)
- No franchise tax
- Major automotive and manufacturing
- Growing tech (Detroit, Ann Arbor)
- Moderate 4.25% flat tax
- Great Lakes access and tourism
- Strong universities (U of M, MSU)
Disadvantages
- 4.25% income tax on MI income
- Moderate processing times
- Harsh winters
- Auto sector concentration
- Less privacy than Wyoming
- Higher metro Detroit suburb costs
Our Pricing: Michigan LLC Formation
Domestic Filers (US Residents)
$249 service fee + $50 state filing fee
International Filers (Non-US Residents)
$349 service fee + $50 state filing fee
Every formation package includes:
- Articles of Organization filing with Michigan Secretary of State
- One year of registered agent service in Michigan
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Michigan LLC today
$299 all-in for US residents. $399 for international. No hidden fees.
Start My Michigan LLC →Over five years: $175 ($50 filing + 5 x $25 statements). Outstanding value. Compare with Arizona ($50) or Wyoming ($510).
Comparing states? Read our Wyoming vs Delaware comparison guide for the full breakdown of top formation states.