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

If you’re starting a business in Michigan, you may consider forming a limited liability company (LLC). Before diving in, you should know that this comes with costs. 

To help prepare you, this handy guide details all you need to know about the cost of launching an LLC in Michigan.

Michigan LLC Costs 

Requirement	Cost
Name Reservation	$25
Articles of Organization	$50
Business Licenses	Varies by company
DBA Name	$25
Annual Statement	$25
Total:	$125

Name Reservation Fee

One of your first decisions will be what to name your LLC. Once you’ve chosen the perfect name, you can reserve it with the state until you’re ready to form your LLC officially.

To do so, you’ll need to make sure the name is available. Here’s how:

1. Check for availability in Michigan

To ensure the business name is available, go to the Department of Licensing and Regulatory Affairs (LARA’s) business entity search and enter the names you like and similar names. You don’t want a business name that can be easily confused with other businesses in Michigan.

2. Check Michigan LLC name regulations

In Michigan, your LLC name must contain the words “limited liability company” or the abbreviations “L.L.C.” or “L.C.” with or without periods. If you’re a low-profit LLC, use “L.3.C” or “l.3.c”.

Your LLC’s name can’t contain words that could confuse people about its business type or purpose and must be different from any other active business name in Michigan.

3. Check Trademarks

It’s a good idea to ensure the name has not been trademarked. Check with the US Patent and Trademark Office to ensure the name is available nationally. 

4. Check domain name availability

You’ll want to ensure the domain name is available. You can check at a site like GoDaddy.com and use .com or .org, as those give your business more credibility.

5. Google it

Do a Google search to ensure the name is not being used in the U.S. or internationally. This is particularly important if you plan to have a strong online presence for your business.  

Once you’ve done your due diligence and know your preferred business name is available, you can reserve the name with the state by using this name reservation form at LARA’s corporations online filing system.

Cost to Register Your LLC in Michigan

To officially form your LLC, you’ll file articles of organization with the state of Michigan by visiting the Department of Licensing and Regulatory Affairs. You’ll need the following information:

• Your LLC’s name
• Brief description of your LLC’s intended business
• Termination date for your LLC (optional)
• Name and address of your registered agent

Business Licenses and Permits

Your LLC may also need to obtain licenses and permits at the federal, state, and local levels. These come with varying fees. 

At the federal level, licenses and permits are generally industry-specific and may include health licenses and permits from the Occupational Safety and Health Administration (OSHA).  

You may need a general business license to operate at the state level. If you sell tangible goods or services subject to sales tax, you’ll need a sales tax license, also known as a seller’s permit. 

Check the SBA guide for specific licenses required for your business. 

Here are some common licenses and permits you may need:

• Industry-specific licenses for certain professions and industries such as construction, plumbing, electrical, childcare, food handling, liquor, architecture, and finance
• Building and zoning permits
• Doing business as (DBA) permit if you’re doing business using a name other than your LLC name
• Health licenses and permits at federal, state, and local levels
• Fire permits
• Sign permits

This is an important step in the LLC formation process, so make sure to check with your state and local government offices to find out all the licenses and permits you need and their costs. If you operate without the proper licenses and permits.

To get started, check out Michigan’s state license search and the Department of Licensing and Regulatory Affairs.

If you need help, it’s a good idea to consult a business attorney to ensure you’re in full compliance. You can also use a service like MyCorporation to do the research and provide you with all the forms you need to license your business. 

Doing Business As (DBA) Name

If you plan to do business under a name that is not your LLC, you’ll need to register a “doing business as,” or DBA, name. To do this in Michigan, file a Certificate of Assumed Name. To do so, you’ll visit the Department of Licensing and Regulatory Affairs website.

Annual Statement

In Michigan, you must file a yearly statement for your business.  The report verifies your business information and confirms that you’re still doing business.

In Closing

Starting an LLC in Michigan is rather a complicated process that includes a handful of fees. There are several hoops to jump through, but the benefits of ensuring your LLC is properly registered and fully compliant are huge, as the alternative risks penalties, fees, and worse. 

LLC formation can be daunting, so many entrepreneurs turn to a professional service like ZenBusiness. This ensures the process is done correctly, saving time and giving you peace of mind.