Michigan vs Ohio LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Michigan charges $50 to form an LLC; Ohio charges $99. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Ohio runs about $26 less in total state fees than Michigan. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, Ohio typically clears standard online filings faster than Michigan. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Michigan costs $49 less to form ($50 vs $99).
- Ohio is $25 per year cheaper to maintain ($100 vs $125).
- Ohio has no annual report filing at all. Michigan requires an annual (or biennial) report every reporting period.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only Ohio
- No annual report
Both states
- Online filing
- Paid expedited tier
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in Michigan, business operates there No foreign LLC registration needed. You pay Michigan fees only. | $175 | $125 | $425 |
| You live in Ohio, business operates there No foreign LLC registration needed. You pay Ohio fees only. | $199 | $100 | $399 |
| Non-resident forming in Michigan with operations elsewhere You pay Michigan's fees plus a typical home-state foreign LLC registration of about $200 per year. | $375 | $325 | $1,025 |
| Non-resident forming in Ohio with operations elsewhere You pay Ohio's fees plus a typical home-state foreign LLC registration of about $200 per year. | $399 | $300 | $999 |
Michigan vs Ohio: full comparison
| Dimension | Michigan | Ohio |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 7 business days | 5 business days |
| Expedited option Paid fast-track filing | $50 | $100 |
| Annual report Required in addition to tax | Required, $25 | None |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $50 | $99 |
| State sales tax General statewide rate | 6.0% | 5.8% |
Taxes in Michigan and Ohio
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
Michigan tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.0%.
Ohio tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income.
Ongoing compliance
The recurring filings each state requires after formation.
Michigan
Annual report $25, due 02/15 each year. Registered agent required in Michigan.
Ohio
No annual state filing. Registered agent required in Ohio.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
Michigan
- Check business-name availability on the Michigan entity search.
- Appoint a registered agent with a physical Michigan street address.
- File Articles of Organization, Domestic Limited Liability Company (Form CSCL/CD-700) for $50.
- Wait for approval. Online typically 7 business days. Paid expedite from $50.
- Adopt an operating agreement (recommended, not required by Michigan statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $25 when it comes due.
Ohio
- Check business-name availability on the Ohio entity search.
- Appoint a registered agent with a physical Ohio street address.
- File Articles of Organization for a Domestic Limited Liability Company (Form 610) for $99.
- Wait for approval. Online typically 5 business days. Paid expedite from $100.
- Adopt an operating agreement (recommended, not required by Ohio statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- No annual state filing required in Ohio.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both Michigan and Ohio (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Michigan or Ohio does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division
- Website
- www.michigan.gov/lara/bureau-list/cscl/corps
- Phone
- (517) 241-6470
- CorpsMail@michigan.gov
- Corporations, Securities and Commercial Licensing Bureau, Corporations Division, P.O. Box 30054, Lansing, MI 48909
- Office
- 2501 Woodlake Circle, Okemos, MI 48864
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Ohio Secretary of State, Business Services Division
- Website
- www.ohiosos.gov/businesses
- Phone
- (614) 466-3910
- P.O. Box 670, Columbus, OH 43216
- Office
- 22 North Fourth Street, Columbus, OH 43215
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Michigan Department of Treasury
- Website
- www.michigan.gov/treasury
- Phone
- (517) 636-4486
- Michigan Department of Treasury, Lansing, MI 48922
- Office
- 430 West Allegan Street, Lansing, MI 48933
- Hours
- 8:00 AM to 4:00 PM Eastern, Monday to Friday
Ohio Department of Taxation
- Website
- tax.ohio.gov
- Phone
- (888) 405-4039
- Ohio Department of Taxation, P.O. Box 2678, Columbus, OH 43216-2678
- Office
- 4485 Northland Ridge Boulevard, Columbus, OH 43229
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Michigan or Ohio?
Michigan is cheaper at formation ($50) than Ohio ($99). Ongoing costs are also different: $125 vs $100 per year. Total over three years: $425 vs $399.
-
Can I form an LLC in Michigan if I live in Ohio?
Yes, but your Ohio business will almost certainly need to register as a foreign LLC in Ohio too, which means paying Ohio's foreign registration fee and any ongoing Ohio obligations on top of the Michigan ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in Michigan vs Ohio?
Michigan online: 7 business days; Ohio online: 5 business days. Michigan offers paid expedite from $50. Ohio offers paid expedite from $100.
-
Which state has lower taxes for an LLC, Michigan or Ohio?
Michigan: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Ohio: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Michigan and Ohio both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Michigan or Ohio to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More Michigan and Ohio comparisons
More Michigan vs ...
Sources
- Filing fee: www.michigan.gov/lara/-/media/Project/Websites/lara/cscl/NonImages_new… · verified April 21, 2026
LARA Form CSCL/CD-700 (Rev. 07/25) Articles of Organization for a Domestic LLC lists the statutory filing fee of $50. Authority: MCL 450.4202 and LARA Corporations Division fee schedule. - Expedited filing: www.michigan.gov/lara/bureau-list/cscl/corps/expedited-service · verified April 21, 2026
LARA expedited service tiers (Form CSCL/CD-272): 24 hours $50 (formation documents); Same day $100; 2 hour $500; 1 hour $1,000. 24-hour tier recorded as the default expedited option. Fees are in addition to the document filing fee. - Online filing portal: www.michigan.gov/lara/news-releases/2025/06/30/michigan-launches-new-m… · verified April 21, 2026
LARA launched the MiBusiness Registry Portal on June 23, 2025 replacing the legacy COFS system. All formations and annual statements are now filed through mibusinessregistry.lara.state.mi.us using a MiLogin for Business account. Standard online processing is typically 7 to 10 business days. - Naming rules: www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-4204 · verified April 21, 2026
MCL 450.4204: LLC name must contain 'limited liability company' or the abbreviation 'L.L.C.' or 'L.C.' (with or without periods). Cannot contain 'corporation,' 'incorporated,' 'corp.,' or 'inc.' The name must be distinguishable from other entities on record. - Operating agreement requirement: www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-23-of-1993.pdf · verified April 21, 2026
Michigan Limited Liability Company Act (Act 23 of 1993), MCL 450.4102 defines the operating agreement but does not require LLCs to adopt one. Default statutory rules under the Act apply if no operating agreement exists. - Foreign LLC registration fee: www.michigan.gov/lara/-/media/Project/Websites/lara/cscl/NonImages_new… · verified April 21, 2026
LARA Form CSCL/CD-760 (Rev. 07/25) Application for Certificate of Authority to Transact Business, Foreign LLC. Filing fee $50. Authority: MCL 450.5007. - Annual report fee: www.michigan.gov/lara/bureau-list/cscl/corps/limited-liability-co/fill… · verified April 21, 2026
Michigan LARA Annual Filings page: Annual Statement Form CSCL/CD-2700 due February 15 each year. Filing fee $25 per MCL 450.4207 and LARA fee schedule. Late filings accepted but entity loses good standing; two years of non-filing triggers administrative dissolution under MCL 450.4909. - Corporate income tax rate: www.michigan.gov/taxes/business-taxes/cit · verified April 21, 2026
Michigan Corporate Income Tax (CIT) is a flat 6% on the corporate tax base after allocation and apportionment under MCL 206.623. Applies to C corps and entities electing C-corp treatment. - Sales tax rate: www.michigan.gov/taxes/business-taxes/sales-use-tax · verified April 21, 2026
Michigan statewide sales and use tax is 6%. Michigan does not permit local-option sales taxes; the statewide rate applies in all 83 counties. - Business name search: mibusinessregistry.lara.state.mi.us/ · verified April 21, 2026
MiBusiness Registry Portal replaces the legacy cofs.lara.state.mi.us search. Used to confirm name availability before filing Articles of Organization. - Filing fee: www.ohiosos.gov/globalassets/business/forms/610.pdf · verified April 21, 2026
Ohio Secretary of State Form 610 Articles of Organization for a Domestic LLC. Filing fee $99 stated on the form. Authority: Ohio Rev. Code §111.16 (Secretary of State fee schedule) and §1706.16 (LLC formation). - Expedited filing: www.ohiosos.gov/businesses/filing-forms--fee-schedule/ · verified April 21, 2026
Ohio SoS expedite tiers: Level 1 $100 (2 business days); Level 2 $200 (1 business day); Level 3 $300 (4 hours, drop-off only). Ohio Rev. Code §111.16(M). Level 1 recorded as the default expedited tier. - Annual report fee: www.ohiosos.gov/businesses/information-on-starting-and-maintaining-a-b… · verified April 21, 2026
Ohio does not require LLCs to file an annual or biennial report. Ohio Rev. Code Chapter 1706 (Ohio Revised Limited Liability Company Act) imposes no recurring SoS report. Fee recorded as null accordingly. - Franchise tax: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio has no LLC franchise tax. The Commercial Activity Tax (CAT) applies to taxable gross receipts above an exclusion of $3 million for tax year 2024 and $6 million for tax year 2025 and beyond (HB 33, 2023). Rate 0.26% of taxable gross receipts above the exclusion. CAT is classified as a gross-receipts tax, not a franchise tax, so franchiseTax.applies is false. - Operating agreement requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio Rev. Code §1706.08 recognizes operating agreements but does not require one to be in writing or filed. Ohio Revised LLC Act (Chapter 1706) governs default rules when no operating agreement is adopted. - Foreign LLC registration fee: www.ohiosos.gov/globalassets/business/forms/617.pdf · verified April 21, 2026
Ohio Secretary of State Form 617 Registration of a Foreign Limited Liability Company. Filing fee $99. Authority: Ohio Rev. Code §1706.511. - Publication requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio does not require newspaper publication for LLC formation. Confirmed via Ohio Rev. Code Chapter 1706 which contains no publication requirement. - Business name search: businesssearch.ohiosos.gov/ · verified April 21, 2026
Ohio Secretary of State Business Search tool. Used to confirm name availability before filing Articles of Organization. - Sales tax rate: tax.ohio.gov/business/ohio-business-taxes/sales-and-use · verified April 21, 2026
Ohio statewide sales and use tax rate is 5.75%. County permissive and transit authority additions can bring combined local rates up to approximately 8.00%. - Corporate income tax rate: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio repealed its corporate franchise/income tax; there is no general corporate income tax. The Commercial Activity Tax is a gross-receipts tax, not an income tax, and is not expressed as a rate on net income. maxCorporateRate is therefore null.