Forming an LLC in Michigan
Forming an LLC in Michigan in 7 easy steps
- The first step is to find a suitable name for your LLC. According to Michigan state law, the name of an LLC cannot include the terms “corporation”, “corp.”, “incorporated” or “inc.”. The name must include an LLC identifier, such as “Limited Liability Company” or an abbreviation thereof. You cannot pick a name that is already used by another LLC and you are naturally not allowed to violate any trademarks.
- When forming an LLC in Michigan, you are not required to hire an attorney – you can do everything on your own. It can however be a good idea to pay an attorney to check your Operating Agreement before you adopt if for you LLC, because a flawed Operating Agreement can give your tax problems in the future. Paying an attorney is a way of reducing the risk of future problems with the IRS.
- During step three, you need to visit the Michigan State filing office and file the Articles of Organization for your LLC. When forming in LLC in Michigan, the minimum state filing fee is $150.00. (For 15 business days.)
- It is now time for you to set up an Organizational Meeting with all the members (owners) of the LLC. You need to formally adopt your Operating Agreement before you can proceed to step 5.
- When the Operating Agreement has been adopted by the members, the LLC can apply for a Federal Employer Identification Number (FEIN).
- During step six, the LLC will open up its own bank account.
- During step seven, the LLC will apply for a local business license and any necessary permits. Remember that you need to apply from each city or county where you wish to do business.
Maintaining an LLC in Michigan
The LLC has to hand in an annual report by February 15th each year and pay the report fee. In Michigan, the annual report fee is $25.
