How to Start an LLC in Michigan (2026): Step-by-Step Guide

Published: May 2026 · Updated for the 2026 tax year

Michigan is one of the cheapest states in the country to run an LLC: $50 to form it, $25 a year to keep it. There's no franchise tax, no initial report, no newspaper notice. The catches are smaller and quieter — an Annual Statement that's always due February 15, a city income tax that catches Detroit and Grand Rapids businesses off guard, and the usual federal paperwork that doesn't care which state you picked. This guide walks through every step, what a Michigan LLC actually costs over time, how to form one from outside the US, and the deadlines worth putting on a calendar.

Form your Michigan LLC for free with Jupid. We prepare and file your Articles of Organization — you pay only the state's $50 filing fee, with no service markup. Start your Michigan LLC →

A note from Slava

I'm Slava, co-founder and CEO of Jupid. Before this I co-founded and scaled an AI-powered accounting platform to around $30M in revenue and more than 100,000 business users — the kind of company that ends up filing a lot of paperwork in a lot of states and watching customers trip over the same potholes again and again.

Michigan is the easy state. The $50 filing fee is real, the $25 Annual Statement is real, and that's mostly it — there's no $800 franchise tax waiting in year two like in California, no publication bill like in New York. So most "how to start an LLC in Michigan" articles can get the headline right and still leave you exposed, because the things they skip aren't the formation fee. They're the city income tax (Detroit alone is 2.4% on residents), the "formed after September 30" rule that changes when your first Annual Statement is due, the fact that the filing office is LARA and not the Secretary of State, and the federal Form 5472 trap that hits foreign-owned LLCs for $25,000 if they miss it.

So this guide does the things the others skip: it adds up the real cost over time, explains the city tax, spells out the non-resident path, and hands you a dated checklist for your first 90 days. Everything here is current for 2026, with links to the official sources so you can verify before you file.

Michigan LLC at a glance

Sources: Michigan LARA — Corporations Division, LARA filing fee schedule, Michigan Department of Treasury.

Should you actually form your LLC in Michigan?

If you live in Michigan and run your business from Michigan, form your LLC in Michigan. The "form in Wyoming or Delaware instead" advice doesn't help here, and Michigan is a bad state to fall for it: an out-of-state LLC that does business in Michigan has to register as a foreign LLC with LARA anyway — a foreign-registration fee, a Michigan resident agent, and the other state's annual fees and compliance — for an LLC that already costs only $25 a year to keep alive in Michigan. You'd be paying more for more paperwork.

Forming elsewhere makes sense in a narrower set of cases: you genuinely don't operate in Michigan, you're a non-resident with no US footprint at all, or you have a specific reason — outside-investor expectations, for instance — that points to Delaware. If you're weighing it, our best state to form an LLC tool walks through the trade-offs, our Wyoming LLC guide covers the non-resident case, and our Ohio LLC guide compares directly if Ohio is also on your list.

For almost everyone with a Michigan business: Michigan it is. Here's how.

How to start an LLC in Michigan, step by step

1. Choose and check your LLC name

Your name has to include "Limited Liability Company," "Limited Company," "L.L.C.," "LLC," "L.C.," or "LC," and it has to be distinguishable from every other entity on LARA's records. Search the Michigan business entity search before you get attached to anything — and our Michigan business name generator is built for trying several options at once. If you want to lock a name in before you file, an Application for Reservation of Name holds it for six months for $25 (optional; most people skip it).

2. Appoint a Michigan resident agent

Every Michigan LLC needs a resident agent — the person or company that accepts legal papers and official notices on the LLC's behalf. It can be an individual who actually resides in Michigan, a Michigan business entity, or a foreign entity authorized to do business in Michigan, and in every case the agent needs a Michigan street address (the "registered office"). A P.O. box won't do. The LLC can't be its own resident agent, but a member or manager who lives in Michigan can serve. The agent's name and address become public record, which is one reason people who'd rather not publish a home address — and everyone who lives out of state — hire a commercial resident agent for roughly $100–$150 a year.

3. File the Articles of Organization with LARA

This is the step that creates your LLC. File the Articles of Organization (Form CSCL/CD-700 on LARA's forms page) online through the MiBusiness Registry for $50 — the same fee online or by mail to LARA in Lansing. You'll list the LLC name, the resident agent and registered office, the duration (usually perpetual), and the purpose. Standard processing usually takes a few business days; if you need it faster, LARA's expedited tiers run roughly $50 for 24-hour review up to $1,000 for one-hour ("immediate") review — check the fee schedule for the exact current amounts. Once it's approved, download the stamped copy from the MiBusiness Registry — your bank will ask for it.

One note: the filing office is LARA, the Department of Licensing & Regulatory Affairs — not the Secretary of State. A lot of articles (and even some state landing pages) get this wrong.

4. Write an operating agreement

Michigan doesn't legally require an LLC to have an operating agreement, and you don't file it with anyone — but you should have one anyway, and you keep it with your company records. It sets out ownership percentages, how profits are split, who can make decisions, and what happens if a member leaves. Even a single-member LLC should have one: it's part of how you keep the liability shield intact, and banks and investors often ask to see it.

5. Get your EIN from the IRS

An EIN is your LLC's federal tax ID, and you need it to open a bank account, hire anyone, and file taxes. It's free. Apply at irs.gov — if you have an SSN or ITIN, the online application takes a few minutes. If you don't (common for non-resident owners), file Form SS-4 by fax, mail, or the IRS international phone line; see the non-resident section below. Never pay a third party for the EIN itself — the number is always free from the IRS.

6. Register for Michigan taxes and local licenses

Forming the LLC doesn't cover your state and local obligations. If you'll have employees, sell taxable goods, or owe other Michigan taxes, register with the Michigan Department of Treasury via Form 518 through Michigan Treasury Online. If your LLC operates in one of the roughly two dozen Michigan cities with an income tax — Detroit, Grand Rapids, Lansing, Flint, Saginaw, and others — register with that city for its tax on net profits. And any professional or industry license you'd need as a sole proprietor — contractor, cosmetologist, food service — you still need as an LLC, and many run through LARA.

7. File the Annual Statement every February 15

Michigan's only standing compliance requirement is the Annual Statement: $25, filed with LARA through the MiBusiness Registry, due February 15 every year. One wrinkle: if you form after September 30, you skip the February 15 that falls right after formation — your first Annual Statement isn't due until the second following February 15. Miss it two consecutive years and your LLC falls out of good standing and can be administratively dissolved; getting it back means a Certificate of Restoration ($50) plus $25 and a $50 penalty for each missed year. Cheap to stay current; not cheap to lapse.

What a Michigan LLC really costs, year by year

Most guides quote "$50 plus $25 a year" and stop. That's close to right — Michigan really is cheap — but here's the fuller picture, including the things you might still pay.

Year one

Every following year

The city income tax nobody flags. Roughly two dozen Michigan cities levy an income tax on residents, on non-residents working there, and on the net profits of businesses operating there. Detroit is the big one — 2.4% on residents, 1.2% on non-residents — and Grand Rapids, Highland Park, and Saginaw are also above the typical 1%/0.5%. If your LLC has a physical presence in one of these cities, that tax can dwarf the $25 state fee, and most Michigan LLC guides don't mention it at all. Find out before you sign a lease.

The 6% Corporate Income Tax probably doesn't apply to you. Michigan's 6% Corporate Income Tax hits only entities taxed as C corporations. A default-taxed LLC — single-member disregarded, multi-member partnership, or S-corp election — is a pass-through: its income lands on the members' returns at Michigan's flat 4.25%, and the LLC owes no CIT. (Profitable multi-member or S-corp-taxed LLCs can elect Michigan's flow-through entity tax at 4.25% as a SALT-cap workaround — worth asking your accountant about, not a default.)

DIY versus a formation service versus Jupid. Doing it yourself costs the $50 state fee and your time. A formation service charges $0–$300 on top of that (the "$0" packages still pass through the $50 and then upsell you a resident agent and a "compliance" subscription). Jupid forms your Michigan LLC for free — you pay only the state filing fee — and then handles the bookkeeping and tax filings afterward, which is where the real ongoing work lives. To model the annual numbers for your situation, use our Michigan LLC annual cost calculator.

Ready to skip the paperwork? Jupid files your Michigan LLC for free — you pay only the state's $50 fee — and then keeps your books and taxes handled from the same chat you'd text a friend in.

Forming a Michigan LLC as a non-resident or foreign founder

You can own a Michigan LLC without being a US citizen or resident — Michigan imposes no residency requirement on members or managers. The practical hurdles are a Michigan resident agent, an EIN, a US bank account, and your US and Michigan tax filings.

Resident agent. If no member or manager lives in Michigan with a real street address (and you don't have a Michigan entity to serve), you must use a commercial resident agent here. Budget around $100–$150 a year. P.O. boxes and mailbox-store addresses don't qualify.

Getting an EIN without an SSN. The IRS online EIN tool requires the responsible party to have an SSN or ITIN, so foreign founders generally can't use it. Instead, file Form SS-4: on line 7a, name the actual individual who controls the LLC; on line 7b, where it asks for that person's SSN/ITIN/EIN, write "Foreign" or "N/A" — don't invent a number. Submit it by fax or mail, or call the IRS international EIN line. Check the current Form SS-4 instructions for the right fax number and phone number, since the IRS changes them. Fax turnaround is usually about four business days; phone is immediate. The EIN is free — third-party "EIN services" charge $50–$300 for paperwork you can do yourself.

ITIN. An ITIN (Form W-7) is a tax ID for individuals who aren't eligible for an SSN. Your LLC gets an EIN; you as an owner may separately need an ITIN if you have to file a personal US return. ITINs are issued with a tax return attached or through an IRS Certifying Acceptance Agent and can take roughly seven to eleven weeks.

The Form 5472 obligation — don't skip this. A single-member LLC owned by a non-US person is a "disregarded entity" that generally must file Form 5472 along with a pro-forma Form 1120 every year, reporting transactions between the LLC and its foreign owner. The penalty for missing it is $25,000. Almost no Michigan LLC guide mentions this; build it into your annual calendar from day one.

US bank account. Most US banks want the owner physically present to open a business account, along with the EIN confirmation letter, the filed Articles of Organization, the operating agreement, and a passport. Several fintech business-banking platforms onboard non-resident-owned US LLCs remotely — eligibility and policies change, so check current terms before you rely on any of them. You'll typically need a US business address, which can be your resident agent or a virtual office depending on the bank.

Michigan tax. The $25 Annual Statement is due regardless of where you live. Pass-through income is taxed at Michigan's flat 4.25% on a member's MI-1040 to the extent it's Michigan-source, and the LLC's flow-through entity tax election can handle the withholding angle for non-resident members. Michigan's city income taxes can also apply to net profits apportioned to a taxing city, no matter where the owner lives. The 6% Corporate Income Tax applies only if the LLC is taxed as a C corporation. Federally, if the LLC is engaged in a US trade or business, the foreign owner has US filing obligations of their own (Form 1040-NR, plus the Form 5472 filing above).

The Corporate Transparency Act (BOI) status

Under the Corporate Transparency Act, LLCs were originally required to file a Beneficial Ownership Information (BOI) report with FinCEN. That changed. FinCEN's interim final rule, published March 26, 2025, redefined a "reporting company" to mean only entities formed under foreign law that register to do business in a US state. As of early 2026, a Michigan-formed LLC — even one with foreign owners — has no BOI filing obligation. FinCEN has said it intends to finalize the rule, so this could shift; check fincen.gov/boi before you assume one way or the other. (If you register a foreign-formed entity to do business in Michigan, the 30-day BOI deadline still applies to that entity, though it doesn't have to report US-person owners.)

Your first 30, 60, and 90 days

Days 1–7

• Get your EIN from the IRS (free; online if you have an SSN/ITIN, otherwise by fax, mail, or phone).
• Adopt your operating agreement — not filed with the state, kept with your records; single-member LLCs need one too.
• Check your BOI status. As of early 2026 a domestic Michigan LLC has no FinCEN filing to make; re-verify at fincen.gov/boi.

Days 1–30

• Open a US business bank account (EIN letter, filed Articles, operating agreement, ID).
• Register for Michigan taxes via Michigan Treasury Online (Form 518) if you'll hire, sell taxable goods, or owe other state taxes.
• Register for city income tax with any Michigan city where the LLC operates (Detroit, Grand Rapids, Lansing, and others).
• Get any professional or industry licenses your work requires — many run through LARA — and look into business insurance (general liability now, workers' comp once you have employees).

Days 1–60

• Set up bookkeeping and a way to track Michigan-source income and net profits by city.
• If your LLC is profitable and multi-member or S-corp-taxed, ask your accountant about the Michigan flow-through entity tax election. If you're a foreign-owned single-member LLC, note the annual Form 5472 + pro-forma 1120 filing.
• Calendar February 15 for the Annual Statement.

By day 90 and every February 15 after

• Michigan has no initial report and no 90-day filing — use day 90 to do a "good standing" check on the MiBusiness Registry. Then file the $25 Annual Statement with LARA by February 15 each year (or the second following February 15 if you formed after September 30).

Common mistakes with Michigan LLCs

Thinking you file with the Secretary of State. Why it hurts: you waste time on the wrong website, or trust a guide that's wrong about more than the office name. Fix: Michigan business entities are with LARA's Corporations Division — file through the MiBusiness Registry.

Forgetting the February 15 Annual Statement. Why it hurts: miss it two years running and your LLC is out of good standing and can be administratively dissolved; restoration costs $50 plus $25 and a $50 penalty per missed year. Fix: set a recurring February 15 reminder the same week you get your EIN.

Ignoring the city income tax. Why it hurts: an LLC operating in Detroit, Grand Rapids, or another taxing city owes a city tax on net profits (Detroit at 2.4%/1.2%) far bigger than any state fee, and registering late draws penalties. Fix: check whether your city levies an income tax before you commit to a location, and register when you start operating there.

Assuming the 6% Corporate Income Tax applies. Why it hurts: you over-reserve cash or file a return you don't owe. Fix: a pass-through LLC (the default) owes no CIT — its income is taxed at the members' 4.25% rate. The CIT applies only if you've elected C-corp taxation.

How Jupid helps

Jupid forms your Michigan LLC for free — you pay only the state's $50 filing fee, with no service markup and no surprise "compliance" subscription. After that, Jupid is your AI accountant, working in WhatsApp and iMessage the same way you already text. It connects to your business bank account, automatically categorizes your transactions (around 95.9% accuracy), keeps your deductions organized, and prepares your tax filings with CPA review before anything is submitted. For a Michigan LLC, the $25 Annual Statement is the easy part — you'll just pay it — but tracking net profits by city, knowing whether the flow-through election makes sense, and keeping books clean enough to back it all up is real work, and that's the work Jupid does for you. Start your Michigan LLC free with Jupid →

Frequently asked questions

How much does it cost to start an LLC in Michigan in 2026? The state filing fee for the Articles of Organization is $50 — among the lowest in the country. After that, the only required recurring fee is the $25 Annual Statement due each February 15. A typical Michigan LLC's first year runs about $50 to $75 if you serve as your own resident agent, before any optional commercial agent service.

When is the Michigan Annual Statement due? Every February 15. The fee is $25, filed with LARA through the MiBusiness Registry. If you formed your LLC after September 30, you skip the February 15 immediately following formation — your first Annual Statement is due the second following February 15.

Do I need a registered agent for a Michigan LLC? Yes. Michigan calls it a "resident agent." It can be an individual who resides in Michigan, a Michigan entity, or a foreign entity authorized in Michigan, each with a Michigan street address. The LLC cannot be its own resident agent, and P.O. boxes are not allowed.

Can a non-US resident own a Michigan LLC? Yes. Michigan has no citizenship or residency requirement for members or managers. You'll need a commercial resident agent in Michigan and an EIN (which you can get without an SSN), and you'll file the $25 Annual Statement and any applicable Michigan and federal returns each year. A foreign-owned single-member LLC also files Form 5472 with a pro-forma Form 1120 annually.

Does Michigan require LLCs to publish a formation notice in a newspaper? No. Unlike New York, Arizona, Nebraska, Georgia, and Pennsylvania, Michigan has no newspaper publication requirement for LLCs.

Does a Michigan LLC pay the 6% Corporate Income Tax? Not if it's a pass-through entity. Michigan's 6% Corporate Income Tax applies only to LLCs that elect to be taxed as C corporations. A single-member, partnership-taxed, or S-corp-taxed LLC isn't subject to the CIT — its income flows to the members and is taxed at Michigan's flat 4.25% individual rate.

How long does it take to form an LLC in Michigan? Online filings through the MiBusiness Registry are usually approved within a few business days, though LARA's turnaround varies. If you need it faster, expedited review runs roughly $50 for 24-hour service up to $1,000 for one-hour service — check the current LARA fee schedule.

Official sources

• Michigan LARA — Corporations Division (LLC formation hub)
• LARA — corporations forms (Articles of Organization / Form CSCL/CD-700, Annual Statement, name reservation)
• LARA filing fee schedule (PDF) ($50 Articles, $25 Annual Statement, $25 name reservation, expedited tiers)
• MiBusiness Registry — online filing portal
• Michigan Department of Treasury (4.25% individual income tax, 6% CIT for C corporations, flow-through entity tax, Form 518)
• Michigan Treasury Online (business tax registration, sales tax, withholding)
• IRS — get an EIN · Instructions for Form SS-4 · About Form 5472
• FinCEN — Beneficial Ownership Information
• Related on Jupid: Michigan LLC formation · Michigan LLC annual cost calculator · best state to form an LLC · Michigan business name generator · what you need to start an LLC

This guide is general information, not legal or tax advice. Fees, deadlines, and thresholds change — verify with the official sources above before you file.

Last updated: May 2026.