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How to start an LLC in Michigan

How to start an LLC in Michigan

How to start an LLC in Michigan

If you come across this article, then you must be aware of LLC (Limited Liability Company). It is one of the simplest ways of structuring your business to protect your personal assets in case if your business gets sued. More than one person can own it, and even the single owner can file an LLC for their company. 

I know that you generally want to know the process of starting an LLC in Michigan. Therefore, to start an LLC in Michigan. You will need to file the articles of organization in the state of Michigan to complete the registration process. This generally costs around 50$ USD. You can apply for the LLC either online, email, or through any registered company. However, you should know that the articles of organization is an only legal document which officially creates your LLC in Michigan.

How to start an LLC in Michigan?

Step 1: Name your Michigan LLC

The company name is the first and most crucial thing while forming an LLC in Michigan. It is because if you cannot choose a unique name for your company, then It is not possible to create an LLC. You should choose a business name that should comply with the Michigan LLC naming law and its requirements. Moreover, it should be something that could be easily searchable by potential clients.

  1. You can follow the naming guidelines for Michigan LLC:
  • Your company name must include the phrase “Limited Liability Company,” aka LLC.
  • Your company name should not include the names that will confuse people. (Such as FBI, bank, etc.)
  • You should not use the restricted words like Banks, etc. It requires other legal paperwork. 
  • Search out for the name online before registration.
  • Check out if the same company name domain available for the registration? (This could help the company to create a legal and better online presence.)

Step 2: Choosing a resident agent in Michigan.

You are required to appoint and maintain a resident agent for your Michigan LLC. It is more commonly known and acts as a registered agent for the LLC of your company.

What is the resident agent?

It is an individual or one of the business entities that should be responsible for receiving all the taxation forms, legal documents, and notices on behalf of the company. It would be best if you thought of your registered agent as part of your business contacts.

Who can be a registered agent?

The registered agent should be from Michigan or any corporation from Michigan. It should be authorized to organize a business in Michigan.

Step 3: File your articles of organization documents.

To complete the registration process of LLC in Michigan. You will need to file articles of organization in Michigan. You can apply it online, via email, or any person. It generally will costs you around 50$.

Articles of Organization: It is one of the legal documents that official forms your business. You are more expected to provide the company name, resident agent, list the services in LLC after the formation of articles of organization document after you file the articles of organization. We will recommend you obtain an EIN. (It is for those companies who plan to hire employees and want to open a business bank account).

Step 4: Create an operating LLC agreement.

It is the document that usually does not require for the LLC in Michigan. However, It is not bad to have one for future purposes. It is also a good practice to have one.

What is an operating agreement? It is one of the legal documents which outlines the ownership and operating procedures in LLC.

Why are operating agreements important? It is required to understand and make it clear that all the business owners are on the same page, and they should reduce the risks of any future conflict.

Step 5: Get an EIN (Employer Identification Number) for your Michigan LLC.

EIN stands for Employer Identification Number. It is a nine-digit number that is issued by the Internal Revenue System. It is generally required to identify the business entity and also to keep track of the taxation of the business.

Why does a company need EIN?

  • This can be required to open a business bank account for the company.
  • To handle all the employee’s salaries and other parts of the company.
  • For federal and state tax purposes.
  • The company can need EIN to hire new employees in the company.

Where does the company can get EIN (Employee Identification Number)?

A company can obtain EIN (Employee Identification Number) from the IRS Department at no extra cost. This can be done after forming the company and creating a proper LLC record. You can either apply for the EIN online or by email.


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