How to Start Your Own LLC in Michigan

This step-by-step guide walks you through the full Michigan LLC formation process—from choosing a legally compliant name to filing state documents, handling taxes, and maintaining compliance—so you can launch your business with clarity and confidence.

1. Name Your Michigan LLC

Choosing the right name for your LLC is an essential first step, as your business name becomes your brand identity and public face. A strong name should clearly communicate what your business does, be easy to remember, and distinguish you from competitors operating in Michigan.

Before settling on a name, it helps to define your business concept. Understanding your products, services, and target audience will guide you toward a name that aligns with your goals. Many entrepreneurs also ask trusted friends, family members, or colleagues for suggestions, as outside feedback can reveal potential issues or confusion.

Once you've developed a shortlist of names, conduct a general web search to check domain availability and identify similar businesses. This can help you avoid branding conflicts and make future marketing easier. Online business name generators can also provide inspiration, though they should be used as brainstorming tools rather than final decision-makers.

After narrowing down your options, you'll need to confirm name availability through the Michigan Secretary of State (LARA) business entity search. This ensures that your desired name is not already in use or too similar to an existing business.

Michigan has specific LLC naming requirements that must be followed. Your LLC name must include the phrase "limited liability company" or an accepted abbreviation such as LLC or L.L.C. The name cannot include words that would cause confusion with a government agency or suggest involvement in illegal activities. Additionally, Michigan maintains a list of restricted words that may require special approval.

To further protect your brand, it's highly recommended that you search the U.S. Patent and Trademark Office (USPTO) database to ensure your name is not already trademarked at the federal level.

If you're not ready to file your LLC immediately, Michigan allows you to reserve a business name. Name reservations must be submitted by mail using the appropriate form from the Michigan Department of Licensing and Regulatory Affairs (LARA).

Mailing Address for Name Reservation:

Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
Corporations Division
P.O. Box 30054
Lansing, MI 48909

The name reservation fee is $25, and once approved, the name is reserved for 180 days.

Doing Business As (DBA) in Michigan

After forming your LLC, you may decide to operate under a name different from your legal LLC name. This is known as a Doing Business As (DBA) or, in Michigan, an assumed name.

DBAs are commonly used when a business expands into new product lines or brands. For example, if your LLC is named JJ's Waffles and you later introduce JJ's Muffins, registering a DBA allows you to operate under that new name without forming a separate legal entity.

Another key benefit of a DBA is banking flexibility. Once registered, you can open a business bank account and accept customer payments under the assumed name, which helps maintain professionalism and simplifies bookkeeping.

In Michigan, assumed names are registered with LARA by mail. The filing fee is $25, and applications are submitted to the same address used for name reservations.

2. Select a Registered Agent

Michigan law requires every LLC to appoint a registered agent. The registered agent is responsible for receiving legal notices, tax documents, and official correspondence on behalf of the business.

A registered agent may be an individual or a business entity, provided they meet state requirements. The agent must be at least 18 years old, have a physical street address in Michigan, and be available during regular business hours. If the agent is a business entity, it must be authorized to operate in Michigan.

While many LLC owners choose to act as their own registered agent, doing so requires consistent availability at the listed address. As a result, many entrepreneurs prefer to hire a professional registered agent service for convenience, privacy, and peace of mind.

3. Determine Your Management Structure

Michigan LLCs can be structured as either member-managed or manager-managed, and this decision determines how the business will be run.

In a member-managed LLC, all members actively participate in managing the business and making day-to-day decisions. This structure works well for small businesses where owners want hands-on involvement. In a manager-managed LLC, one or more managers handle operations, while other members act as passive investors.

Although a member can serve as a manager, Michigan requires that a manager-managed LLC include at least one manager who is not a member. If your Articles of Organization do not specify a management structure, the LLC is considered member-managed by default.

Choosing the right structure early helps clarify responsibilities and reduces the likelihood of disputes later.

4. File Articles of Organization with LARA

To officially form your Michigan LLC, you must file Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). This document establishes your LLC as a legal entity.

The Articles of Organization require information such as your LLC name, principal office address, registered agent details, business purpose, and contact information.

The filing fee is $50, and standard processing typically takes 10 to 15 business days.

LARA Contact Information:

Michigan Department of Licensing and Regulatory Affairs
Ottawa Building
611 W. Ottawa
P.O. Box 30004
Lansing, MI 48909

Phone: 517-241-9223
Fax: 517-241-0290

5. Draft an Operating Agreement

An Operating Agreement outlines how your LLC is owned and managed and defines the rights and responsibilities of its members. While Michigan does not legally require an operating agreement, having one is strongly recommended—even for single-member LLCs.

A well-drafted operating agreement helps reinforce your liability protection, clarifies financial arrangements, and provides procedures for resolving disputes. It typically addresses ownership interests, management authority, voting rights, profit distribution, and procedures for adding or removing members.

Although templates are available online, having an attorney review or draft your operating agreement can ensure it accurately reflects your business goals and complies with Michigan law.

6. Get Your Employer Identification Number (EIN)

An Employer Identification Number (EIN) is issued by the IRS and is used to identify your LLC for tax purposes. An EIN is required if your LLC has more than one member, hires employees, or elects corporate taxation.

You can apply for an EIN for free through the IRS website. During the application, you must identify a "responsible party," which must be an individual who controls or manages the company's finances and operations.

7. Obtain Business Licenses and Permits

Michigan does not issue a general state-level business license. However, depending on your industry and location, your business may require specific state or local licenses and permits.

Many professional and regulated industries—such as construction, food service, childcare, finance, and healthcare—require state-level licenses. The Michigan State License Search tool can help identify applicable requirements.

If your business sells taxable goods or services, you must obtain a sales tax license. Local cities and counties may also require zoning permits, health permits, fire inspections, or signage approvals.

Operating without the proper licenses can result in fines, penalties, or suspension of business activities, so thorough research and compliance are essential.

8. Determine Your Tax Status

By default, Michigan LLCs are treated as pass-through entities for tax purposes. This means the LLC itself does not pay federal income tax; instead, profits and losses are reported on the members' personal tax returns.

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless an election is made. LLCs may also elect to be taxed as C-Corporations or S-Corporations if doing so provides tax advantages.

Michigan imposes a 6% corporate income tax on LLCs that elect corporate taxation.

Other Michigan LLC Requirements

After forming your LLC, it's important to open a dedicated business bank account to keep personal and business finances separate. This separation is essential for maintaining liability protection and simplifying tax reporting.

Applying for a business credit card can help build your company's credit profile and cover startup expenses. Additionally, obtaining appropriate business insurance—such as general liability, professional liability, and workers' compensation—helps protect your investment.

Maintaining organized records of formation documents, contracts, and financial statements is also critical for long-term compliance and operational efficiency.

Reporting Requirements in Michigan

Michigan LLCs must file an Annual Statement with LARA by February 15 each year. The filing fee is $25. Failure to file can result in penalties or administrative dissolution.

Michigan LLC FAQs