Michigan vs Utah LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Michigan charges $50 to form an LLC; Utah charges $59. 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, Utah runs about $12 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, Utah 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 $9 less to form ($50 vs $59).
- Utah is $7 per year cheaper to maintain ($118 vs $125).
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.
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 Utah, business operates there No foreign LLC registration needed. You pay Utah fees only. | $177 | $118 | $413 |
| 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 Utah with operations elsewhere You pay Utah's fees plus a typical home-state foreign LLC registration of about $200 per year. | $377 | $318 | $1,013 |
Michigan vs Utah: full comparison
| Dimension | Michigan | Utah |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 7 business days | 2 business days |
| Expedited option Paid fast-track filing | $50 | $75 |
| Annual report Required in addition to tax | Required, $25 | Required, $18 |
| 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 | $59 |
| State sales tax General statewide rate | 6.0% | 4.8% |
Taxes in Michigan and Utah
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%.
Utah tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.5%.
Ongoing compliance
The recurring filings each state requires after formation.
Michigan
Annual report $25, due 02/15 each year. Registered agent required in Michigan.
Utah
Annual report $18, due on your anniversary month. Registered agent required in Utah.
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.
Utah
- Check business-name availability on the Utah entity search.
- Appoint a registered agent with a physical Utah street address.
- File Certificate of Organization, Domestic Limited Liability Company for $59.
- Wait for approval. Online typically 2 business days. Paid expedite from $75.
- Adopt an operating agreement (recommended, not required by Utah 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 $18 when it comes due.
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 Utah (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 Utah 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
Utah Division of Corporations and Commercial Code (Utah Department of Commerce)
- Website
- commerce.utah.gov/corporations
- Phone
- (801) 530-4849
- corpucc@utah.gov
- Utah Division of Corporations and Commercial Code, P.O. Box 146705, Salt Lake City, UT 84114-6705
- Office
- 160 East 300 South, 2nd Floor, Salt Lake City, UT 84111
- Hours
- 8:00 AM to 5:00 PM Mountain, 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
Utah State Tax Commission
- Website
- tax.utah.gov
- Phone
- (801) 297-2200
- Utah State Tax Commission, 210 North 1950 West, Salt Lake City, UT 84134-0266
- Office
- 210 North 1950 West, Salt Lake City, UT 84134
- Hours
- 8:00 AM to 5:00 PM Mountain, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Michigan or Utah?
Michigan is cheaper at formation ($50) than Utah ($59). Ongoing costs are also different: $125 vs $118 per year. Total over three years: $425 vs $413.
-
Can I form an LLC in Michigan if I live in Utah?
Yes, but your Utah business will almost certainly need to register as a foreign LLC in Utah too, which means paying Utah's foreign registration fee and any ongoing Utah 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 Utah?
Michigan online: 7 business days; Utah online: 2 business days. Michigan offers paid expedite from $50. Utah offers paid expedite from $75.
-
Which state has lower taxes for an LLC, Michigan or Utah?
Michigan: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Utah: 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 Utah 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 Utah 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 Utah 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: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah Division of Corporations and Commercial Code Fiscal Year 2026 Fee Schedule, effective July 1, 2025. Domestic limited liability company (LLC) certificate of organization filing fee = $59.00. Same fee online and by mail. - Expedited filing: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule, Section 11 (Other Filings and Fees): Expedited processing fee = $75.00 per filing. Expedited filings are typically processed within one business day. - Foreign LLC registration fee: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule: Foreign limited liability company (LLC) registration filing fee = $59.00. - Annual report fee: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule, Section 3 (Renewal/Annual Report Filings): Limited liability company (LLC) renewal = $18.00, which includes a $5 State of Utah single sign-on portal surcharge. Late renewal fee = $10.00. Statutory deadline confirmed by Utah Code 48-3a-212 as the anniversary month of formation. - Operating agreement requirement: le.utah.gov/xcode/Title48/Chapter3a/48-3a.html · verified April 21, 2026
Utah Revised Uniform Limited Liability Company Act (Utah Code Title 48 Chapter 3a) does not require a written operating agreement. Operating agreements may be oral, in a record, implied, or any combination. - Franchise tax: le.utah.gov/xcode/Title59/Chapter7/59-7-S104.html · verified April 21, 2026
Utah Code 59-7-104 imposes a 4.5% corporate franchise and income tax with a $100 minimum on corporations. The tax applies to LLCs that elect corporate tax treatment, not to default pass-through LLCs. Because the default LLC owes no Utah franchise tax, we record applies as false. The 4.5% rate and $100 minimum are noted in taxes.notes for context. - Corporate income tax rate: le.utah.gov/xcode/Title59/Chapter7/59-7-S104.html · verified April 21, 2026
Utah Code 59-7-104(2): Corporate franchise and income tax rate = 4.5% of Utah taxable income (effective January 1, 2025). 59-7-104(3): minimum tax $100. - Sales tax rate: tax.utah.gov/business/sales-tax/sales/rates/ · verified April 21, 2026
Utah State Tax Commission combined sales and use tax rate charts effective January 1, 2026: state-only sales tax rate = 4.85%. Local option, county option, mass transit, and other local add-ons raise the combined rate to approximately 6.1% to 9.5% depending on jurisdiction. - Business name search: businessregistration.utah.gov/ · verified April 21, 2026
Utah Business Registration portal (formerly secure.utah.gov/bes) hosts the business entity search and online formation filings. The legacy bes.utah.gov URL now redirects to businessregistration.utah.gov. - Online filing portal: businessregistration.utah.gov/ · verified April 21, 2026
Utah Division of Corporations online filing portal. Filers must log in with a UtahID account to file a Certificate of Organization for a new domestic LLC. - Certificate of Formation form: commerce.utah.gov/corporations/business-entities/domestic-limited-liab… · verified April 21, 2026
Utah no longer distributes a fillable Certificate of Organization PDF for domestic LLCs. The Division moved to an online-only filing flow through businessregistration.utah.gov; filers complete the certificate through the portal. Paper filings are accepted via a general Submit a Paper Filing upload path but there is no numbered form. - Naming rules: commerce.utah.gov/corporations/policies-and-procedures-for-administeri… · verified April 21, 2026
Utah Division of Corporations policy page covering business entity name availability and standards. Published by the Utah Department of Commerce at commerce.utah.gov.