How To Register An Llc In Michigan – Get a quick and easy service for fast and accurate Michigan LLC filing online starting at $0 plus state fees
Want to start your business as a Limited Liability Company (LLC)? Michigan could be the place for you. With a low cost of living, steady economic growth and an increasing focus on small businesses, the Great Lakes State offers many opportunities for aspiring entrepreneurs.
How To Register An Llc In Michigan
LLCs also offer benefits to new business owners. Benefits include liability protection (by separating your personal assets and liabilities from your business assets) and flexibility in how your business is run and taxed. To create an LLC in Michigan, you must follow certain steps. And if you want to reap the benefits mentioned above, you need to follow the steps carefully.
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Trying to follow all the rules for creating an LLC may seem more complicated than navigating traffic in Ann Arbor during a Michigan home game, but fear not. Our step-by-step guide will take you through the entire formation process. Along the way, we’ll also explore how our services can help you cut red tape so you can focus on running your business.
LLC requirements vary by state, so it’s important to familiarize yourself with Michigan law before proceeding. In general, it all boils down to these steps:
To form an LLC in Michigan, you need to register your business. This means submitting the Articles of Incorporation to the Michigan Department of Licensing and Regulatory Affairs (LARA). However, before you can file these incorporation documents, you must name your company and appoint a resident agent.
Once your Articles of Incorporation are filed, you will need to create an LLC Operating Agreement. Finally, you’ll be ready to pay your taxes by getting an Employer Identification Number (EIN).
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Below, we’ll show you how to start a Michigan LLC in five key steps. We’ll also include some useful information to help you get your business up and running.
Note: These guidelines are for forming a domestic LLC. A domestic LLC is a limited liability company incorporated in the same state where you live. If you need to start an LLC outside of your state, you will form a foreign LLC. Forming a foreign LLC in Michigan involves obtaining a certificate of authorization to do business in the state and following another process.
The first step is naming your LLC in Michigan. In addition to choosing something that fits your desired brand image, you also need to make sure that your desired name is justified. That means making sure the name isn’t already being used by another company and that you’re following Michigan’s naming rules.
For starters, the name of your Michigan LLC cannot be the same as or confusingly similar to the name of another business in the state. Use our Michigan business entity search page to check online to see if the name is available.
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Your business name must also include the indicator that it is an LLC. Options for setting up an LLC in Michigan include:
The name of your LLC cannot contain words or phrases that suggest it is a corporation, such as “Corporation,” “Corporation,” “Corporation,” or “Inc.”
Found the perfect name but not ready to shape your business? In Michigan, you can reserve your name for up to 180 days. Use our business name reservation service to hold your name until you’re ready to file your articles of incorporation.
Having an online presence is a big part of running a successful business. So you might want to make sure that your desired business name is also available as an aURL. Use our domain search tool to find out what domain names are available for your LLC.
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If you find one you want to use, you can also use our domain name service to go ahead and register that domain name. We can also help you build a business website and get domain name privacy.
Note: You may want to go ahead and check out the social media handles available at the same time. This way you can keep all your branding aligned (name, website, social media, etc.).
If you want to do business under a name other than your official business name, you will need to file an assumed name in Michigan. This is also known as “doing business as” or “DBA name” and “fictitious business name” or “FBN” in other states.
Businesses often use fake names to do things like launch a new product line or open a new store. For example, if a company with the legal name “ABC Toys, LLC” wanted to sell puzzles online as “ABC Puzzles,” it would file a false name.
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Even if your business entity search shows that the name you want is available, that doesn’t mean you’re clearly using it. Names can also be traded at the state and federal level.
To further ensure that the name you want is available for use, you can run a trademark search. Check for state-level trademarks through the Michigan Department of Licensing and Regulatory Affairs. You can search for federal trademarks through the US Patent and Trademark Office. (USPTO). If the name you want is not already protected, you can also consider applying for your own trademark.
The next step is to appoint a Michigan resident agent. Commonly called a “registered agent” in other states, a resident agent is an individual or business entity that receives legal and official government notices on behalf of your LLC.
If process or state servers need to contact your business, they need a reliable contact center. This is what a resident agent (also known as a registered agent) is for.
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To serve as a resident agent in Michigan, an individual or business entity must have a physical address in the state (a post office box will not suffice). Your permanent agent and registered office must also be listed in your Articles of Association.
Legally, you can serve as a resident or registered agent for your business, but there are several reasons why this is not a good idea:
Instead of serving as their own permanent agent or asking a friend or family member to do so, many business owners choose to use the services of a professional registered agent. The services of an Michigan registered agent like ours allow you to:
If the Michigan Department of Licensing and Regulatory Affairs cannot get in touch with your resident agent’s office, you may find yourself out of state compliance. Failure to comply can result in serious penalties such as liquidation of your LLC’s administration.
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In addition, you may miss out on receiving notices that your business has been sued or taken legal action.
This can all easily happen if your registered agent’s office moves and you forget to update your paperwork with the state.
One of the best ways to avoid potential problems with your resident agent’s office being out of touch is to use the services of a professional registered agent.
By acting as your resident agent, you can ensure that your resident office address is always up to date and that all legal notices will be received and delivered on time. This means you can go on vacation, enjoy family time, or do whatever you want without worrying about missing a legal notice or service.
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Next, it’s time to file your Michigan Articles of Organization. This is the document that officially forms your LLC in Michigan.
You will file the Articles of Incorporation with the Michigan Department of Licensing and Regulatory Affairs, Bureau of Corporations, Securities and Commercial Licensing, Division of Corporations. You can file this formation document online, by mail, or in person at the Lansing location, along with a nonrefundable $50 filing fee.
One of the choices you have when starting an LLC is whether your business will be managed by members or a manager.
Under a member-managed structure, the day-to-day management of an LLC is managed by its members. When you choose a manager-managed structure, you will either appoint one or more members to manage your LLC, or you will hire an outside manager.
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Unless specified in your operating agreement, your LLC will be member-managed by default. This is the option most LLC owners choose, but which one is best for you depends on preference and availability.
For example, are all of your members capable and available to manage the day-to-day needs of your LLC? If so, member management may be right for you. On the other hand, if only one of your members is available, or if you need to hire an outside manager, then managed management may be best.
You only need to submit your Articles of Association once. However, if you make a significant change below (such as changing your resident agent), you will need to file a Michigan Certificate of Change with LARA, along with the appropriate filing fee.
If you need to submit an amendment, our amendment submission service can do it for you. Plus, our worry-free compliance service even includes two annual amendment submissions.
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If you allow us to file your Articles of Incorporation, your documentation will be available on your dashboard once the state approves your LLC. Here you can organize all your important documents.
Depending on your profession, you may need to form a professional LLC (PLLC) instead of a standard LLC. Michigan law says that those in certain licensed professions (think doctors, lawyers, and accountants) who want to offer their services under an LLC can only do so as a professional LLC.
If you are in such an industry, check with the licensing agency or board
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