How to Start an LLC in Michigan

Start an LLC in Michigan in 3 simple step

1. Name your Michigan LLC
2. Choose a registered agent in Michigan
3. File with the state

Michigan LLC

Starting an LLC is one of the simplest and safest ways to shape your business while protecting your assets, should your business be sued. That said, filing one without prior experience can be a challenging and time-consuming process. Any mistakes you make can cause significant delays.

Now, let’s review the steps required for you to incorporate an LLC business and obtain LLC protection. Each U.S. state has its own set of guidelines for starting an LLC, however as this article focuses on Michigan, the following is a full guide to starting your Michigan LLC on your own.

Step 1: Choose a unique name for your Michigan LLC

Choosing a name for your Michigan LLC is not as easy as it looks. First, you will need an original and one-of-a-kind name that is not currently being used by any other business in Michigan. The search results should show ‘No Matching Entries Found,’ which tells you that you can proceed with your chosen LLC name.

Here is a quick summary of the main guidelines:

• Your LLC business name should not contain the following words: ‘Agency,’ ‘Board,’ ‘Bureau,’ ‘Commission,’ ‘Department,’ or ‘Municipal’
• Your chosen name should include ‘Limited Liability Company’ or at least an abbreviation of the entire phrase like ‘LLC,’ ‘L.L.C.,’ ‘Limited,’ ‘Ltd.,’ ‘Company,’ or ‘Co.’
• The name should not be confused with a government organization, so words and phrases like ‘State Department,’ ‘Treasury,’ and ‘FBI,’ among others, cannot be used

We recommend that you check if your website domain is available from the get-go, even if you don’t have plans of launching a website for your business now. If you’re proactive, you can prevent other businesses from snagging a URL that you may want to use in the future.

Step 2: Select your Michigan resident agent and registered address

All Michigan LLCs must select a resident agent and a registered office. The registered agent position is responsible for receiving official government documents, tax correspondence, and legal notices. Part of the responsibility is also filing the needed reports with the Michigan Secretary of State. They are your LCC’s point-of-contact with the Michigan government, in short.

This position can be yourself, another manager in your LLC, or a professional Resident Agent service. You can check out our registered agent page to better understand why we highly recommend that you appoint a professional Resident Agent service. (See our recommended services below.)

Should you pay for the services and expertise of a Resident Agent service, it is essential that they have a physical address in Michigan and should always be available to receive documents on behalf of your company during standard business hours.

Fortunately, we’ve got not one, but two industry-leading recommendations for you!

#1. ZenBusiness

BEST FOR: Register your LLC company

As the name suggests, there’s no need to ruin your zen under the weight of legal jargon – ZenBusiness is one of the most reliable registered agent services in Michigan, with thousands of positive reviews and high ratings. With ZenBusiness you can register your business in less than 10 minutes. You can also use their registered agent service for $199 and take advantage of their worry free compliance service so you can focus on running and growing your business.

Additionally, ZenBusiness provides you with a virtual dashboard, so you have 100% visibility of the forms and documents of your company. You can review them, download documents, and even print them to have a personal copy for any business or legal reasons.

Read our full ZenBusiness review

Pros:

Visit ZenBusiness.com

#2. Northwest Registered Agent

BEST FOR: Professional registered agent service

Northwest Registered Agent is a well-established registered agent service with two decades of experience. They allow you to add a registered agent in multiple states (if your business requires it) and can cover all of your Michigan LLC registration needs.

Northwest Registered Agent gives you an online portal to easily access your uploaded documents and state forms. You can check anytime from anywhere while ensuring that all your information is secure.

Read our full Northwest Registered Agent review

Pros:

Visit northwestregisteredagent.com

Step 3: File your Formation

As repaired with the state.

Additional services and requirements

Create a Michigan LLC Operating Agreement

We recommend that you create an Operating Agreement as soon as you register your LLC in Michigan. It is the instruction manual that contains all relevant details of how you will run your business, how decisions are to be taken, etc. However, it is not legally required.

My LLC in Michigan is registered – What’s next?

Congratulations on your LLC! Don’t forget that the process and legwork don’t stop here. After successfully forming your LLC, post guidelines can make your business organized, seamless, and less complicated.

Set the line between personal and business resources

It’s recommended that you separate your personal assets from your LLC. Assets such as your house, car, and other personal properties should not mix with your LLC’s assets. This way, if your Michigan LLC gets sued, you can have peace of mind knowing that your valuables are safe and will not be dragged into the picture.

Open your business bank account

It will be easy and tempting to ‘borrow’ or refinance your LLC using your account when your LLC needs some financial uplift, but don’t. Just like your personal resources, your savings and money meant for personal use should be kept private. If you need funds to jump-start your business, you can always consider a business loan.

Onboard a business accountant

A business accountant can oversee and ensure that your organization is not overpaying in taxes while at the same time making sure that you don’t have any penalties and other expensive tax errors. Having one also removes the responsibility of bookkeeping and payroll off your shoulders. You can focus on the other angles of growing your business.

Consider getting business insurance

Regardless of how small your company is at the moment, growth and expansion are part of the long-term goal. Getting business insurance can help you feel secure from any possible risks. It can assist you in managing potential lawsuits or even malpractice and other business-triggered errors.

As a responsible and pro-employee organization, you’d also want to consider workers’ compensation insurance to provide coverage for your employees should there be any work-related injuries, sicknesses, or even death that may happen.

Frequently asked questions

What’s the Michigan LLC state fee cost to register a new business?

The fee in Michigan is $50.

Is a Trade Name mandatory for my business?

In Michigan, most LLCs don’t need a ‘Doing Business As’ (DBA) or a trading name. The name you set for your LLC is your brand name, and you can accept payment under that name. It is recommended that you have a DBA when you have plans to do business under a different name.

How long is the processing time for my Articles of Organization?

If you filed it online and through mail, the ideal turnaround time is 10 business days. This can be expedited to 1 business day, though, if you are willing to pay more. You may get it within 24 hours for a fee of $50, or within the same day for a fee of $100. There are also options like two-hour expedited processing for $500 and one-hour processing for $1000.

Featured reading

• Best LLC filing services
• LLC Vs Corporation
• How to start an LLC in Texas