Michigan LLCs (limited-liability companies) are legal entities created at state level that provide flexibility in management, pass through taxation and personal asset protection. Three things are required before your LLC can start to ring the cash register. You must appoint a registered administrator, choose a business name and file Articles of Organization with Michigan Department of Licensing and Regulatory Affairs. The documents can be filed online or by mail. To file the articles, it costs $50 Our step-by-step guide will help you set up an LLC in Michigan. Your business will be up and running in no time.
1. Name Your LLC
An LLC requires a name. But not every name will do. Michigan Compiled Law (SS 450.4204 states your LLC name:
- You must include “limited liability corporation,” “limited company,” and “LLC.”
- You should not use abbreviations or words to make it sound like an LLC is another entity, such as “corps” or “limited partnerships.”
- You will be unique among Michigan business names.
Can I reserve a Michigan business address?
Have you thought up the perfect business name, but aren’t sure if it is right for you? You can reserve a name for up six months. An Application to Reservation of Name must be filed with Michigan’s Corporations Division. To reserve a name, it costs only $25
Michigan uses “resident agent” rather than “registered agent”, but the terms can be interchangeable. A Michigan registered representative is an individual or company who receives legal correspondence and official paperwork on behalf your LLC. Michigan law requires registered agents to be present for LLCs. You can either hire us as our professional registered agent, or you can be your own registered agents. Your registered agent will be required to file your state documents and create your LLC.
What does a registered representative do?
Michigan Compiled Law (SS 450.4207) outlines the requirements of a Michigan registered agent. Your registered agent must meet the following minimum requirements:
- A physical address is required in Michigan.
- You should keep regular business hours (9am-5pm), at this address.
- Accept legal mail and correspondence sent by the Michigan Division of Business Filings in your company’s name and they will send it to you as soon as possible.
Do you want to be your own registered representative in Michigan?
You betcha. It’s worth considering. Registered agents should be available during business hours and must list their name, address and phone number on public records. If you are looking for flexibility in your business hours or privacy, you may not want your own registered agent.
Now that your LLC is registered and has a name, it’s time for you to complete and file your Articles of Organization. Registering your articles with state is what makes an LLC legal. It also protects your personal assets from liability.
Notification: All data on this form will be part of the public record.
For the articles to be completed successfully, you’ll need the following information about your LLC:
- Company Name. Include a reference like “LLC” in your legal company name.
- The purpose (optional). Most LLCs don’t include this section.
- Duration (optional). This section can be skipped if you don’t plan on adding an expiration date to the LLC.
- Resident agent. The person or company that accepts legal mail on behalf your LLC.
- Registered address. Must reside in Michigan.
- Additional provisions (optional). Provide additional information about the LLC, such as whether it is manager-managed or member managed.
- Effective date (optional). Add a start day to your LLC in order to defer its formation for upto 90 days.
- Signature of the organizer. The signer must be present when submitting articles.
- Submitter. Contact information and name of the person who submitted articles.
- Get your LLC up and running quickly with Expedite The cost of expediting starts at $50 for 24-hour service and goes up to $1,000 per hour.
How can I ensure that my personal information is not made public?
We’re not just talking nonsense. It is essential to hire a registered agent in order to keep your personal data from being made public. The name and contact information of anyone who files their Michigan Articles of Organization are available online. You can hire a registered agent to help you with your public filings. However, your personal information will not be disclosed.
How do you file the Michigan Articles of Organization
To form your Michigan LLC you will need to file Articles of Organization (LARA) with the Michigan Department of Licensing and Regulatory Affairs. You can either file the document online or by mail. You will need to pay $50 for the entire process. Online filings take approximately two weeks to be approved, while mail can take almost a whole month. For $50 extra, your LLC can be ready in 24 hours. You can get a 1-hour formation for $1,000 if you have the patience of a toddler and deep pockets.
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
P.O. P.O.Box 30054
Lansing (MI 48909)
2501 Woodlake Circle
4. Make an LLC Operating Agreement
Next, an operating agreement is required. Do not delay. Operating agreements for LLCs outline the details of how meetings will be held, the duties of members and how profits (or losses) will be distributed. The operating agreement can be customized to the individual needs of each member. It is an internal document so it doesn’t need to be filed. But, not taking the time and writing one could come back to bite your.
Are operating agreements required in Michigan for an LLC?
Michigan is not required to have operating agreements for LLCs, as it is with many other states. But that doesn’t necessarily mean you shouldn’t create one. Operating agreements are internal documents, so you don’t need to file them with state. You should note that your LLC will still be subject to the state’s default LLC statutes if it does not have an operating agreement. Trust us, Michigan doesn’t want to tell LLC members how they should resolve disputes or how to split profits. This is why you need to make sure that your operating agreement has been signed in writing.
Your EIN or Employer Identification Number is a nine digit number that the IRS assigns to you for tax filing and reporting purposes. Your EIN can be thought of as your company’s Social Security Number. An EIN can be obtained by submitting a direct application to the IRS. Simply fill out the online application, complete the validity check and your LLC will have its EIN in no time.
6. Opening a Bank account
The next step is to open a bank accounts for your LLC. By creating a separation between your personal finances and your business’s, you can increase your LLC’s liability protections. A business bank account is not only convenient for accepting and making payments but also helps you keep your accounting organized and to identify potential tax write offs.
The following information is required to open a bank bank account for your Michigan LLC.
- Michigan LLC Articles of Organization
- The operating agreement of the LLC
- The LLC’s EIN
- If your LLC has more members, an LLC Resolution is required to open a bank account.
Although you’re ready to get started with your shiny new LLC immediately, it is important to pay attention to these last formalities. Michigan requires you to file an annual statement (sometimes known as an annual report). The $25 fee covers the cost of the statement. If your LLC fails to file an annual statement every two years, it will be administratively closed.