How to Form an LLC in Michigan (2026)
Reviewed by DocDraft Legal Team · Michigan · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Michigan means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Michigan you create an LLC by filing the Articles of Organization with the Department of Licensing and Regulatory Affairs (LARA), Corporations Division, and paying a $50 filing fee. Two features make Michigan friendlier than most states. First, Michigan charges no franchise tax or minimum annual tax on a standard LLC, so there is no recurring state levy just for existing. Second, the only ongoing state paperwork is an annual statement filed with LARA for a $25 fee, which keeps the company in good standing. Michigan LLCs are governed by the Michigan Limited Liability Company Act, MCL 450.4101 and following. This guide explains what an LLC is, the exact Michigan steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Michigan
Where are you in forming your LLC?
DocDraft provides document preparation, not legal advice.
How do you form an LLC in Michigan?
File the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division, and pay the $50 filing fee. You must name a resident agent with a Michigan street address for the registered office. Online filings take about 10 business days, and mailed filings take about four weeks.
Does a Michigan LLC pay a franchise tax?
No. Michigan does not impose a franchise tax or a minimum annual tax on a standard LLC. The main recurring state obligation is the annual statement filed with LARA for a $25 fee. A Michigan LLC is taxed as a pass-through by default, so profits flow to the owners and there is no separate state entity tax just for existing.
Does a Michigan LLC have to file an annual statement?
Yes. Every Michigan LLC must file an annual statement with LARA each year for a $25 fee. The statement confirms the LLC's resident agent and registered office address. Filing it on time keeps the company in good standing, and missing it can eventually lead LARA to place the LLC out of good standing status.
Does Michigan require newspaper publication to form an LLC?
No. Michigan does not require an LLC to publish notice of its formation in a newspaper. This is unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating. In Michigan the Articles of Organization filing with LARA and the yearly annual statement are the only required state steps.
Michigan LLC formation at a glance
You form a Michigan LLC by filing the Articles of Organization with the Department of Licensing and Regulatory Affairs (LARA), Corporations, Securities and Commercial Licensing Bureau, Corporations Division, for a $50 filing fee. What sets Michigan apart is how light the ongoing burden is. Michigan charges no franchise tax and no minimum annual tax on a standard LLC, so unlike states with a flat yearly levy, a Michigan LLC owes nothing to the state simply for existing. The one recurring requirement is an annual statement filed with LARA each year for a $25 fee, which confirms the LLC's resident agent and registered office. Every Michigan LLC must name and continuously maintain a resident agent with a Michigan street address, which serves as the registered office where legal papers and state mail are received. Michigan uses the term resident agent rather than registered agent, but the role is the same. Michigan does not require newspaper publication. Processing runs about 10 business days for online filings and about four weeks for mailed filings. The governing statute is the Michigan Limited Liability Company Act, MCL 450.4101 and following.
Forming a two-owner Michigan LLC, step by step
Suppose two friends in Grand Rapids want to open a small design studio as an LLC. First they search the LARA business entity search to confirm their name is available and includes a designator such as LLC or Limited Liability Company, and they can reserve the name with LARA for a $25 fee while they prepare paperwork. Next they appoint a resident agent: one owner lives in Michigan and agrees to serve, using a Michigan street address, not a P.O. box, as the registered office where legal papers can be delivered during business hours. They then file the Articles of Organization (Form CSCL/CD-700) with LARA and pay the $50 filing fee. Online filings are processed in about 10 business days, while a mailed filing takes about four weeks, and the LLC legally exists once LARA files it. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Michigan does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Finally they calendar the $25 annual statement due to LARA each year to keep the LLC in good standing. Michigan charges no franchise tax, so there is no separate minimum tax to budget for at the state level.
Relevant Laws
Michigan Limited Liability Company Act (MCL 450.4101 et seq.)
The Michigan LLC Act governs the formation, management, and dissolution of every Michigan LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the resident agent and registered office requirement, and the default rules for member-managed and manager-managed companies. LARA administers filings under the Act.
MCL 450.4203 (Articles of Organization)
Requires an LLC to be formed by filing Articles of Organization with LARA. LARA provides this as Form CSCL/CD-700, which states the LLC's name, the purpose, the resident agent and registered office address, and whether the company is member-managed or manager-managed. The filing fee is $50.
MCL 450.4207 (Resident agent and registered office)
Requires every Michigan LLC to continuously maintain a resident agent and a registered office in Michigan. The resident agent, an individual resident of the state or an authorized entity, receives lawsuits and official notices for the company at a Michigan street address. The agent and registered office are listed on the Articles of Organization and confirmed on each annual statement.
Michigan annual statement (filed with LARA)
Michigan requires every LLC to file an annual statement with LARA each year for a $25 fee. The statement confirms the resident agent and registered office of record and keeps the company in good standing. Unlike states with an income-based annual fee, Michigan's charge is a flat $25 regardless of the LLC's revenue.
Michigan tax treatment (no franchise tax on standard LLCs)
Michigan does not levy a franchise tax or a minimum annual tax on a standard LLC. A single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership at the state level, with income passing through to the owners on their Michigan returns. An LLC that elects corporate treatment may fall under the Michigan Corporate Income Tax instead.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Michigan LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from Michigan state filing requirements.
Regional Variances
How forming an LLC in Michigan differs from other states
No franchise tax or minimum annual tax
This is the headline difference. Michigan charges no franchise tax and no flat minimum tax on a standard LLC, so the company owes the state nothing just for existing. California, by contrast, charges an $800 minimum annual franchise tax, and Delaware charges a $400 annual tax. In Michigan the only recurring state cost is the $25 annual statement.
Low $50 formation fee
Michigan's $50 filing fee for the Articles of Organization is among the lower state fees. Many states charge well above it, such as $300 in Texas and $500 in Massachusetts. The low entry cost makes Michigan an inexpensive state in which to bring an LLC into existence.
Annual statement, not an income-based report
Michigan requires a flat $25 annual statement with LARA each year, confirming the resident agent and registered office. Some states tie the yearly fee to income or member count. Michigan's charge is the same $25 regardless of what the LLC earns, which keeps ongoing compliance predictable.
Resident agent terminology and filing office
Michigan uses the term resident agent rather than registered agent, and filings go to the Department of Licensing and Regulatory Affairs (LARA) rather than a Secretary of State. The formation document is the Articles of Organization (Form CSCL/CD-700). Some states instead call it a Certificate of Formation or Certificate of Organization.
No newspaper publication requirement
Michigan does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A Michigan LLC is complete once LARA files the Articles of Organization, with no publication step to complete afterward.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the LARA business entity search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with LARA for a $25 fee while you prepare your Articles of Organization.
Appoint a resident agent and registered office
Before filing days after startingMichigan requires a resident agent with a Michigan street address, the registered office, who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Michigan, or a commercial resident agent service will serve. You will name the agent on the Articles of Organization, so settle this first.
File the Articles of Organization (Form CSCL/CD-700) with LARA
To create the LLC days after startingFile Form CSCL/CD-700 with the LARA Corporations Division online or by mail and pay the $50 filing fee. Online filings are processed in about 10 business days and mailed filings in about four weeks. The LLC legally exists only once LARA files it, so keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Michigan's LLC act allows members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
File the annual statement with LARA each year
Annually days after startingFile the annual statement with LARA each year and pay the $25 fee. It confirms the LLC's resident agent and registered office of record. LARA usually sends a reminder before the deadline. Missing it can eventually place the LLC out of good standing, so calendar it when you form and confirm the exact due date on your LARA notice.
Confirm your Michigan tax obligations
Before your first tax year days after startingA standard Michigan LLC pays no franchise tax and no minimum annual tax, and it is taxed as a pass-through with income reported on the members' returns. If you elect corporate treatment or have employees or sales tax duties, register with the Michigan Department of Treasury. Confirm current requirements, since tax provisions change.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the LARA business entity search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with LARA for a $25 fee while you prepare your Articles of Organization. | - | Before filing |
| Appoint a resident agent and registered office | Michigan requires a resident agent with a Michigan street address, the registered office, who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Michigan, or a commercial resident agent service will serve. You will name the agent on the Articles of Organization, so settle this first. | - | Before filing |
| File the Articles of Organization (Form CSCL/CD-700) with LARA | File Form CSCL/CD-700 with the LARA Corporations Division online or by mail and pay the $50 filing fee. Online filings are processed in about 10 business days and mailed filings in about four weeks. The LLC legally exists only once LARA files it, so keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Michigan's LLC act allows members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| File the annual statement with LARA each year | File the annual statement with LARA each year and pay the $25 fee. It confirms the LLC's resident agent and registered office of record. LARA usually sends a reminder before the deadline. Missing it can eventually place the LLC out of good standing, so calendar it when you form and confirm the exact due date on your LARA notice. | - | Annually |
| Confirm your Michigan tax obligations | A standard Michigan LLC pays no franchise tax and no minimum annual tax, and it is taxed as a pass-through with income reported on the members' returns. If you elect corporate treatment or have employees or sales tax duties, register with the Michigan Department of Treasury. Confirm current requirements, since tax provisions change. | - | Before your first tax year |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that legally separates the company from its owners, called members. Members are generally not personally responsible for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. Michigan LLCs are created under the Michigan Limited Liability Company Act, MCL 450.4101 and following, and administered by the Department of Licensing and Regulatory Affairs (LARA). The structure pairs that liability protection with pass-through taxation and lighter paperwork than a corporation.
Michigan uses the Articles of Organization, filed as Form CSCL/CD-700 with the LARA Corporations Division, and the filing fee is $50. The form states the LLC's name, its purpose, the resident agent and registered office, and whether the company is member-managed or manager-managed. Note that Michigan calls the document Articles of Organization, while some states call the same filing a Certificate of Formation. Attorney review of your paperwork before filing is available as an option through DocDraft.
Michigan uses the term resident agent rather than registered agent, but the role is identical. Every Michigan LLC must name and continuously maintain a resident agent with a Michigan street address, which serves as the registered office where lawsuits and official state mail are received during business hours. You can serve as your own agent, name a co-owner who lives in Michigan, or hire a commercial service. You list the agent on the Articles of Organization and confirm it on each annual statement.
Yes. Before filing the Articles of Organization, you can search the LARA business entity database to confirm your name is available and reserve it with LARA for a $25 fee while you prepare your paperwork. Your name must include a designator such as LLC or Limited Liability Company and avoid restricted words that need special approval. Reserving the name holds it so another filer cannot take it while you finish your Articles of Organization.
A standard Michigan LLC is a pass-through entity, so it pays no separate state entity income tax. Profits pass to the members, who report their shares on their individual Michigan income tax returns. Michigan also charges no franchise tax or minimum annual tax on a standard LLC. If the LLC elects to be taxed as a corporation, it may fall under the Michigan Corporate Income Tax instead, so confirm your treatment with the Michigan Department of Treasury.
Michigan charges no franchise tax and no minimum annual tax, so the only recurring state cost is a flat $25 annual statement filed with LARA to confirm the resident agent and registered office. By comparison, California charges an $800 minimum annual franchise tax and Delaware charges a $400 annual tax. That difference means a Michigan LLC owes the state nothing simply for existing, keeping ongoing compliance costs predictable and low.
Other Michigan guides
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