LLC Formation and Costs in Michigan
How long is an LLC valid in Michigan? An LLC in Michigan normally takes 10-15 days to be approved. Expedited processing is available. It costs $10 to renew an LLC in Michigan. Additionally, a $25 annual report filing fee applies. Contact the Secretary of State office to check your LLC status in Michigan. Businesses pay different tax rates based on their entity.
To form an LLC in Michigan costs $50. This covers registering your LLC. Additional costs like licenses, permits, registered agent services, and taxes also apply. A foreign LLC must obtain a Certificate of Authority to operate in Michigan. You can be your LLC’s registered agent if you have an in-state physical address.
Forming an LLC protects your assets and is easy in Michigan. Costs include a $50 formation fee and $25-$75 for annual taxes. Getting permits and a registered agent are also requirements. The process can be expedited, and does not require an attorney.
LLC Renewal in Michigan
Do you have to renew your LLC every year in Michigan? A Michigan limited liability company (LLC) must comply with the state’s Limited Liability Act. Under the act, you must renew your company’s status each year by filing an annual statement with the state.
If you fail to do so for two years, your LLC will no longer be in good standing in Michigan and your company’s name will become available for others to use. You must file the statement each year by February 15.
The Michigan LLC renewal fee is the domestic charge and foreign corporations pay to renew corporate existence which is also called the certificate of authority.
LLC Maintenance Costs in Michigan
How much does it cost to maintain an LLC in Michigan? To maintain an LLC in Michigan you will need to pay an annual fee of $25 along with sales tax at 6%, income tax at 4.25% and federal taxes.
The cost of maintaining an LLC in Michigan has two main components:
- State filing fees
- Annual reporting requirements
When initially forming an LLC, you must submit Articles of Organization and pay a one-time $50 fee. You also must file an annual statement by February 15th, which costs $25 for a standard LLC or up to $75 for a professional LLC.
Business Licensing Costs
How much does it cost to get a business license in Michigan? Obtaining a sales tax license is free in Michigan. However, other licenses may cost $15-$1,000 annually depending on industry, region, and profession. When launching a Michigan LLC, consider working with a fast LLC service for streamlined incorporation.
Be mindful of Michigan’s LLC law, which outlines formation and operation requirements. The $50 filing fee to create an LLC may be expedited for an additional fee. While forming an LLC has benefits, there are drawbacks to consider. However, Michigan makes the process easy and affordable.