How to Form an LLC in Michigan

Introduction

Forming an LLC in Michigan is a straightforward process, but there are some steps you need to take before you begin. You’ll need to get your business name approved by the state and file it with the Department of Licensing and Regulatory Affairs (LARA). You’ll also need to create an operating agreement—an internal document that dictates how your business will operate. Once these steps are completed, you can apply for licenses and permits at various government offices throughout the state.

Choose a business name.

A company name is the first step to creating your LLC. To ensure that your business name isn’t already in use by another company, consider checking with the Michigan Department of Licensing and Regulatory Affairs to see if it’s available. If you need help coming up with a great idea for your business name, here are some tips:

• Keep it short and easy-to-remember. The less time people have to spend trying to recall a brand’s name, the more likely they are to purchase from them again (and refer friends).
• Avoid numbers or punctuation marks unless absolutely necessary (e.g., “Aardvark Appliances”). These can be hard for customers who aren’t native English speakers or those who may not read well enough yet understand how these characters work together within their meaning as part of speech—thus making it harder for them when choosing between all different options out there today!

File an Article of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA).

The form is available online at the Michigan Department of Licensing and Regulatory Affairs (LARA). All members must sign it, and it must be notarized. The completed form should then be filed with LARA, who will send you an official certificate of formation.

This step takes about 30 minutes, plus any time for mail delivery to and from LARA.

Create an operating agreement.

An operating agreement is a document that details how your LLC will be run. It’s important to have one, because it helps you and your fellow members understand the terms of the LLC and what each member’s responsibilities are. An operating agreement can also help prevent disputes among members later on down the road.

An operating agreement is not required by law in Michigan, but we strongly recommend that all Michigan LLCs have one. When you create your Michigan business entity online through LegalZoom, our legal document preparation service will include an optional sample operating agreement for free. You can use this as a model for creating your own customized version of the document or just skip straight to making changes yourself with our secure online editing tool!

Register with the state tax department.

You’ll need to register your business with the state tax department. You will also need to register for a Michigan sales tax permit and a Michigan withholding tax permit, as well as other permits that are required by law.

Obtain an employer identification number (EIN) from the IRS.

Before you can form an LLC, you must obtain an employer identification number (EIN) from the IRS. The EIN consists of nine digits and is used to identify your business when dealing with the IRS and other tax authorities. You can apply for an EIN online at the IRS website or by mail, fax or phone:

• Online: Visit this page on the IRS website and click “Apply for an Employer Identification Number.” Complete all required fields before submitting your application. It takes approximately two minutes to submit this request online; however, processing may take up to five days.
• Mail: Complete Form SS-4 (Application for Employer Identification Number). Mail it along with a copy of your articles of organization and information about yourself as listed in Section A (Part I) of Form SS-4. Processing time is generally up to five days but could take longer if additional information is needed or if an inquiry needs to be made regarding your initial application.
• Fax: Print out Form SS-4, complete Section A (Part II), write “Fax” across that section and fax it along with a copy of your articles of organization and information about yourself as listed in Section A (Part I) back to us at 855-859-1253; however, please note that we do not accept faxes during normal business hours due to our high call volume capacity during those times.”

Register for other necessary permits and licenses.

Once you have your LLC, it’s time to register for other necessary permits and licenses.

• Business license. Most cities will require an annual business license, which you can apply for online or at the city clerk’s office. The fee varies by jurisdiction but can be as low as $50 or as high as $500+ per year depending on where your business is located and the size of your operation.
• Occupational license. If you plan to hire employees in Michigan, there are additional occupational licensing requirements that may apply to you (e.g., cosmetology licenses). Your specific situation will depend on what type of services your company provides—and how many people are working in these roles—but there are several state agencies that regulate different types of occupations and businesses across Michigan: Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes (BCC), Department of Consumer Affairs & Agriculture Services (DCAS), Department of Natural Resources (DNR), Michigan Liquor Control Commission (MLCC)

You need to register with several different offices when you form an LLC in Michigan.

When you form an LLC in Michigan, you need to register with several different offices.

• You’ll need to register with the state tax department. This involves filing articles of organization and paying a filing fee of $200.
• You’ll also need to register your LLC with the IRS if it’s taxed as a partnership or corporation (as opposed to an S corp). The IRS will send back its approval letter once it has approved your application for an EIN (Employee Identification Number). It’s best to get this done before registering your business locally so you can work on forming your company while waiting for approval from the federal government.
• You’ll also need to register your LLC with LARA (the Department of Licensing & Regulatory Affairs) by filling out forms LARA-101 and ML-1A-101A along with paying a $100 fee per company member listed on those forms within 30 days after formation.

You should contact LARA before applying for licenses related specifically to business activities that require licensing or registration through them—such as selling certain products or arranging certain types of insurance coverage—or else they could deny applications due simply because they hadn’t received information about something happening within their jurisdiction yet!

Conclusion

We hope this guide has been helpful to you. Your next step is to get started! You can easily form an LLC by filing the appropriate forms with the state, and then registering with your local government office if necessary. Remember that you will also need to register as a business with your state tax department and obtain an EIN from the IRS before filing any tax returns or hiring employees in Michigan.