Business Formation / LLC Michigan

How Much Does It Cost to Start an LLC in Michigan?

📝 Initial Formation Costs

• Articles of Organization Filing Fee: $50 (mandatory)
  This is the primary fee to legally form your LLC with the Michigan Department of Licensing and Regulatory Affairs (LARA). 

• Expedited Processing (Optional): $50–$1,000
  For faster processing of your LLC formation documents. 

• Name Reservation (Optional): $25
  Reserving your desired LLC name before filing is optional.

• Assumed Name (DBA) Registration (Optional): $25
  If you plan to operate under a different name than your LLC's legal name.

🔄 Ongoing Annual Costs

• Annual Statement Fee: $25 (mandatory)
  Due by February 15 each year to keep your LLC in good standing. 

• Late Filing Penalty: $10 per month, up to $50
  If the annual statement is filed after the due date. 

🛡️ Additional Optional Costs

• Registered Agent Service: $0–$300/year
  You can act as your own registered agent at no cost, or hire a service for privacy and convenience.

• Operating Agreement: $0–$500
  While not required, drafting an operating agreement is recommended to outline the management structure and operating procedures of your LLC.

• Certificate of Good Standing: $10
  Often required when opening business bank accounts or registering to do business in another state.

💰 Estimated Total Costs

• Minimum Startup Cost: $50
  (Filing Articles of Organization)

• Typical Startup Cost with Optional Services: $75–$349
  (Including name reservation, DBA registration, and registered agent service) 

• Annual Maintenance Cost: $25–$325
  (Annual statement plus optional registered agent service)

📌 Additional Considerations

• Business Licenses and Permits: Costs vary depending on your business type and location. Check with local city or county governments for specific requirements.

• State Taxes: Michigan LLCs are generally pass-through entities for tax purposes, but you may be subject to state income tax, sales tax, or other taxes depending on your business activities.

• Federal EIN: Obtaining an Employer Identification Number (EIN) from the IRS is free and necessary for tax purposes.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization