Find out how to form an LLC in Michigan online with the help of Nolo’s LLC formation packages.
Checkout this video:
Limited liability companies (LLCs) in Michigan are businesses that have chosen to structure themselves as entities that offer their owners personal liability protection.3 min read
What is an LLC?
An LLC is a business entity that provides limited liability protection to its owners. An LLC can be formed by one or more persons, and it can be used for any lawful business purpose. Unlike a corporation, an LLC is not required to have a board of directors or hold annual meetings.
An LLC is created by filing articles of organization with the Michigan Department of Treasury. The articles of organization must include the name and address of the LLC, the name and address of the registered agent, and the duration of the LLC. The articles of organization must also state that the LLC is formed for a lawful business purpose.
Once the articles of organization are filed, the LLC is legally recognized as a separate entity from its owners. This means that the LLC’s owners are not personally liable for debts incurred by the business. The only exception to this rule is if one of the owners personally guarantees a loan or debt incurred by the LLC.
If you plan to do business in Michigan, you should consider forming an LLC. An LLC will provide you with limited liability protection and will simplify your tax filings. You can form an LLC online using our easy-to-use service.
The Benefits of an LLC
There are many benefits to forming an LLC in Michigan, including personal asset protection, tax advantages, and flexibility in management structure. An LLC can also help you establish your business as a separate legal entity, which can make it easier to obtain financing and enter into contracts.
How to Form an LLC in Michigan Online
In order to form an LLC in Michigan, you must first choose a name for your LLC and then file the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs. You can do this online, by mail, or in person.
Step One: Name Your LLC
The name of your LLC must end with “Limited Liability Company”, “L.L.C.” or “LLC”. It can’t say it’s an corporation (Inc.) or have any words that would make someone think it was something it’s not. It also can’t be too similar to another business name in Michigan
Here are some tips:
-Pick a name that is easy to remember and spell.
-Make sure the name you want is available by checking with the Michigan Department of Treasury Business Tax Services. They have a searchable database of all businesses registered in Michigan.
-You may want to consider a “doing business as” (DBA) name for your LLC. This is also known as an assumed name, trade name or fictitious name. A DBA lets you conduct business under a different name than your LLC’s legal name. You would still be operating as an LLC, but customers and vendors will know you by your DBA. Applying for a DBA is usually done at the county level When you file for your DBA, the county will do a search to make sure no one else is already using the same or a similar name
-If you plan on doing business in more than one state, you should check with each state to see if there are any restrictions on out-of-state businesses using names that are already taken in that state
Step Two: Choose a Registered Agent
The first step in forming an LLC in Michigan is to choose a registered agent. A registered agent is a person or business that agrees to accept legal documents on behalf of the LLC. The registered agent must have a physical address in Michigan and be available during normal business hours.
The second step is to file the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs. The Articles of Organization must include the LLC’s name, registered agent, purpose, and duration. The filing fee for the Articles of Organization is $50.
The third step is to draft and sign an Operating Agreement. The Operating Agreement is a contract between the LLC’s members that outlines how the LLC will be run. The Operating Agreement is not required by Michigan law, but it is a good idea to have one to prevent disputes among the members.
The fourth step is to obtain any necessary licenses and permits. Depending on the business activities of your LLC, you may need to obtain different licenses and permits from state and local governments.
The fifth step is to open a bank account for your LLC. You will need to have your Articles of Organization and your Operating Agreement when you open the account.
Congratulations! You have now formed an LLC in Michigan!
Step Three: File the Articles of Organization
The next step is to file the Articles of Organization with the Michigan Department of Licensing and Regulatory Affairs (LARA). You can do this online, by mail, or in person.
If you file by mail, you will need to include:
-the completed Articles of Organization form
-a filing fee of $50
-a self-addressed stamped envelope (if you want a copy of the filed Articles returned to you)
If you file online, you will need to pay a filing fee of $125. You will also need to provide an email address, so that the LARA can send you a confirmation once your filing has been processed.
Once your Articles of Organization have been filed, you will need to wait for them to be approved by the LARA. This can take up to 10 business days. Once approved, you will receive an Approval Letter from the LARA. Congratulations – you have now officially formed your LLC!
Step Four: Create an Operating Agreement
After you have registered your LLC with the state of Michigan and have obtained an Employer Identification Number (EIN) from the IRS, you will need to create an operating agreement. This document spells out the roles and responsibilities of each member of the LLC, how profits and losses will be distributed, and what will happen if a member leaves the LLC.
While an operating agreement is not required by Michigan law, it is a good idea to have one in place to avoid any misunderstandings or disputes down the road. You can create your own operating agreement or use a template provided by a legal or business organization. Once you have created your operating agreement, be sure to keep it in a safe place; you will need to refer to it often as your LLC grows and changes.
Step Five: Get an EIN
You will need to have an Employer Identification Number (EIN) in order to open a business bank account and file your business taxes. You can apply for an EIN online through the IRS website. You will need to have your business information, such as your business name and address, ready when you apply.
Now that you know the basics of how to form an LLC in Michigan, you can get started on the process by visiting the Michigan Secretary of State website. Remember to stay organized and keep track of all the paperwork and filings required to keep your business in good standing. Forming an LLC is a great way to protect your personal assets and give your business a professional identity.
“Food fan. Extreme twitteraholic. Avid pop culture advocate. Beer practitioner. Hipster-friendly coffee maven.”