LLC formation in Michigan: fees, filing steps, and ongoing costs
Data last updated: Apr 21, 2026Where Michigan fits, and where it doesn't
Good fit for Michigan
You live in Michigan and run your business from the Detroit metro, Grand Rapids, Lansing, Ann Arbor, or anywhere else in the state. You run a small trades or service business with Michigan customers and a Michigan address. You have a real estate holding entity for Michigan property. You are an auto-adjacent supplier, a consulting firm, or an e-commerce operation with Michigan roots. You want a short formation, a cheap annual filing, and no franchise-tax surprises after year one.
Skip Michigan when
You live in Texas, Florida, or California and someone pitched you on forming in Michigan because the fees are low. Michigan's low fees are a home-state benefit, not a tax-shelter angle. If you operate from your home state and form in Michigan, you still have to foreign-qualify back home, your home state still wants its annual filing, and now you are paying Michigan's $25 and a Michigan registered agent on top. For non-residents, form at home or in Wyoming.
What a Michigan LLC actually costs
- Formation filing fee Paid once at formation $50
- Commercial registered agent Annual, estimate $100
- Annual report fee Annual, due 02/15 $25
- Year 1 total estimate Formation plus first-year ongoing $175
Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.
Cost across the first three years
How Michigan compares on the basics
How to apply for an LLC in Michigan
- Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Michigan Secretary of State record. Check availability at the Michigan entity search.
- Designate a registered agent
Every Michigan LLC is required to have a registered agent with a physical street address in Michigan. You can serve as your own agent if you live in Michigan, or hire a commercial service for $99 to $249/yr. See the Michigan registered agent guide.
- File Articles of Organization, Domestic Limited Liability Company (Form CSCL/CD-700)
Filing fee is $50. Online filing is available through the state portal. Mail filings are accepted. Paid expedite is available for $50.
- Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
- Adopt an operating agreement
Michigan does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.
Filing walkthrough
You file Articles of Organization (Form CSCL/CD-700) through the MiBusiness Registry Portal at mibusinessregistry.lara.state.mi.us. LARA launched this portal on June 23, 2025, replacing the old COFS system, and all formations and annual statements now go through it. The fee is $50 whether you file online or by mail. Online filings typically take 7 business days; mail filings run around 14 business days. Expedited service is $50 for 24 hours turnaround, with faster tiers up to $1,000 for one-hour service.
The name on the agency catches people. Michigan processes corporate filings through LARA (the Department of Licensing and Regulatory Affairs), not the Secretary of State. If you are used to calling a Secretary of State's office for entity questions, the Michigan SoS will politely redirect you to LARA's Corporations Division. Every Michigan LLC needs a resident agent with a Michigan street address; commercial agents start around $50 per year. The form asks for the usual: name, purpose, duration, resident agent, management structure.
How Michigan taxes an LLC
Michigan imposes no franchise tax and no privilege tax on pass-through LLCs. The former Michigan Business Tax was repealed and replaced by the Corporate Income Tax (CIT), which only applies to C corporations and LLCs that elect C-corp treatment with the IRS. For a default pass-through LLC, there is no entity-level state tax at all.
Members pay Michigan's flat 4.25% individual income tax on their share of pass-through income, which is one of the lower flat rates in the country. Statewide sales tax is 6% with no local sales tax addition (the Michigan Constitution prohibits local-option sales taxes), so point-of-sale math stays simple across all 83 counties. The CIT is a flat 6% on apportioned Michigan income, and small corporations with under $350,000 in apportioned gross receipts or under $100 of CIT liability are exempt from filing.
Federal treatment is the usual LLC default. Pass-through for single-member or multi-member LLCs unless you elect S-corp or C-corp with the IRS.
Ongoing compliance and costs after year one
Budget $25 per year for the LARA Annual Statement (Form CSCL/CD-2700), which is due every February 15, plus $50 to $125 for a commercial resident agent if you need one. That is the whole ongoing state bill for a pass-through LLC. Over three years, you are looking at $75 in state fees plus agent costs, which is among the cheapest compliance regimes in the country.
There is no franchise tax, no periodic license tax, no privilege tax. If you foreign-qualify in another state because you operate there, that state's fees stack on top, but nothing at the Michigan level scales with revenue or membership size.
Common mistakes forming a Michigan LLC
Two things trip people up. First, Michigan's agency name. LARA is not the Secretary of State, and forms, filings, and the business registry all live under LARA. Filers who search 'Michigan Secretary of State LLC' land on the wrong department, end up looking at driver's license pages, and waste an hour. The entity work is all at michigan.gov/lara. Second, the February 15 annual statement deadline. Michigan uses a fixed calendar date rather than the anniversary model most states use, and LLCs that file in late January or early February run into their first annual statement almost immediately. If you form in January 2026, your first annual statement is due February 15, 2027, not February 15, 2028; plan accordingly.
State agencies that handle Michigan LLCs
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
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
Frequently Asked Questions
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How much does it cost to form an LLC in Michigan in 2026?
The Articles of Organization filing fee is $50, paid once to LARA's Corporations Division. Plan for another $50 to $125 per year for a commercial resident agent with a Michigan street address. The LARA annual statement is $25 per year, due every February 15, making Michigan one of the cheapest states to maintain an LLC long-term.
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Why is Michigan filed with LARA instead of the Secretary of State?
Michigan assigns corporate and LLC filings to the Department of Licensing and Regulatory Affairs (LARA) through its Corporations, Securities and Commercial Licensing Bureau. The Michigan Secretary of State handles driver licensing, vehicle registration, and elections, not business entities. This is a Michigan-specific structure; the agency name catches filers used to calling a Secretary of State's office.
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Does Michigan have a franchise tax on LLCs?
No. Michigan imposes no franchise tax, no privilege tax, and no entity-level state tax on pass-through LLCs. The former Michigan Business Tax was repealed and replaced by the Corporate Income Tax, which applies only to C corporations and LLCs that elect C-corp treatment. Default pass-through LLCs owe nothing at the entity level.
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Does Michigan have an annual report for LLCs?
Yes. Michigan LLCs file an Annual Statement (Form CSCL/CD-2700) with LARA each year by February 15. The fee is $25. As of June 23, 2025, all annual statements must be filed online through the MiBusiness Registry Portal. Two consecutive years of non-filing triggers administrative dissolution under MCL 450.4909.
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How long does it take to form a Michigan LLC?
Online filings through the MiBusiness Registry Portal typically clear in 7 business days. Mail filings take around 14 business days. Expedited service is available starting at $50 for 24 hours turnaround, with higher tiers at $100 for same-day, $500 for two-hour, and $1,000 for one-hour service.
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Do Michigan LLCs pay state income tax?
The LLC itself pays no Michigan entity-level income tax by default. Members report their share of pass-through income on their personal Michigan return at the state's flat 4.25% rate. An LLC that elects C-corp treatment is subject to the Corporate Income Tax at 6% on apportioned Michigan income, with a filing exemption for corporations under $350,000 in apportioned gross receipts.
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Should I form my LLC in Michigan instead of my home state?
Only if you actually live or operate in Michigan. Michigan's low fees are a benefit for home-state filers, not an arbitrage play for non-residents. If you live in another state and form in Michigan, you still have to foreign-qualify back home and pay both states' fees, plus a Michigan resident agent. For non-residents with no Michigan presence, Wyoming or your home state is almost always the better pick.
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Does Michigan require an operating agreement?
No. The 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 agreement exists. A written operating agreement is still strongly advised for multi-member LLCs and helps preserve the liability shield in a dispute.
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How do I apply for an LLC in Michigan?
Apply for an LLC in Michigan by filing Articles of Organization, Domestic Limited Liability Company (Form CSCL/CD-700) with Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division. The filing fee is $50. Online filing is available through the state portal. Approval typically takes 7 business days online. Mail filings take about 14 business days. Before filing, pick a registered agent (see the Michigan registered agent guide) and confirm your business name is available using the state's entity search.
Further reading on LLCs
How much does an LLC cost?
Formation, annual, and hidden fees broken down across all 51 US jurisdictions.
Registered agents for LLCs
What the role is, whether to be your own, and honest comparison of 12 national services.
LLC vs sole proprietorship
Liability, taxes, cost, and when each makes sense. Written for a working owner.
LLC vs S-corp election
When the S-corp tax election actually saves money, with concrete SE-tax math.
Dissolve a Michigan LLC
Step-by-step dissolution: member vote, tax clearance, state filing, IRS closure.
Formation services compared
Bizee, Northwest, ZenBusiness, LegalZoom, and 11 more. Honest price comparison.
Compare Michigan to another state
Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Michigan.
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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.