Cost to Form an LLC in Michigan
To form a Limited Liability Company in Michigan, file the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau. The LLC filing fee is $50.
Approval for the LLC typically takes between 10-15 business days. Expedited service is available to reduce the time to file the LLC. 24-hour service is available for an additional $50, same day service is an additional $100, two-hour service is an additional $500 and one-hour service is available for $1,000. In this situation where the LLC needs to be filed quickly, it is advisable to submit in person at the Michigan Department of Licensing and Regulatory Affairs – Corporations, Securities & Commercial Licensing Bureau office located at 2501 Woodlake Circle in Okemos, MI. For more information, contact 517-241-6470.
An out-of-state LLC wanting to do business in Michigan will have to register as a foreign LLC by filing an Application for Certificate of Authority to Transact Business in Michigan (CSCL/CD-760) with the Michigan Department of Licensing and Regulatory Affairs.
Steps to Form a Michigan LLC
To file an LLC in Michigan, begin by downloading the Articles of Organization (Form CSCL/CD-700) or filing online. This form is for most business activities, however, if this Limited Liability Company will be providing professional services such as a dentist, physician, surgeon, doctor of divinity, attorney, etc, you can use form BCS/CD 701, though it’s not required. This is the filing form for the Professional Limited Liability Company (sometimes called a Professional LLC or PLLC)
Step 1: Name the LLC
Enter the name you want for the LLC. The LLC’s name also has to differ from other entity names registered with the state of Michigan. Check on available Michigan LLC names before filing to be sure the one you want is available.
Additionally, the name of the LLC must include one of the following phrases or abbreviations at the end of the business name:
- Limited Liability Company
Step 2: Purpose of the LLC
You are allowed to provide more information about what the LLC will do; however, you can keep the included text “The purpose or purposes for which the limited liability company is formed is to engage in any activity within the purposes for which a limited liability company may be formed under the Limited Liability Company Act of Michigan” and not add anything more.
Step 3: Entity Duration
If you intend the business to exist forever, which most businesses leave this field blank. If you have a specific end date in mind (typically used for investment-related businesses) choose a dissolution date.
Step 4: Resident Agent
A Resident Agent (more commonly known as a Registered Agent) must be identified to have an LLC in Michigan for service of process. The Registered Agent can either be a resident of Michigan or a Resident Agent service registered with the state. The agent must have a physical street address in the state to act as a point of contact to receive legal documents, tax notices, summons, subpoenas, etc on behalf of the LLC.
Step 5: Additional Provisions
This is an optional section and not used by most LLCs. Here you would include additional rules for the operation of the LLC.
The most common provision would be if the LLC were Manager-Managed. If the LLC is Manager-Managed, meaning the members hired a manager to run the LLC, similar to a CEO of a corporation a statement would need to be included in this Article. It’s more common for an LLC to be Member-Managed, meaning the members (owners) are actively involved in the business’s day-to-day operations.
Step 6: Additional Articles
Additional articles can be added. One common one is a delayed effective date. By default, the LLC is effective on the date submitted. If you prefer to have the LLC officially start at a later date (up to 90 days), enter that date in a new article.
Step 7: Signature
The LLC organizer(s) need to sign the Articles. The organizer(s) are typically the members but can also include or be an attorney, accountant or resident agent.
Step 8: Pay and File
Pay and file the Articles of Organization.
The LLC will be approved in approximately 10-15 business days with standard processing or less with expedited processing.