How Much Does an LLC Cost in Michigan (All the Fees to Pay)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: August 22, 2026

FACT CHECKED by Aran Quinn, CPA, Esq., LL.M

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Forming an LLC in Michigan costs $50 to file the Articles of Organization. You pay that fee to the Department of Licensing and Regulatory Affairs, known as LARA, either online or by mail.

LARA charges more once you add faster processing, a name reservation, or an assumed name. This guide breaks down every fee you'll actually see. It starts with the paperwork that creates your LLC and runs through the annual costs that keep it in good standing.

Some fees below hit once. Some repeat every year. A few apply only in specific cases. Each section says which is which.

Quick Summary

One-Time Costs to Form a Michigan LLC

These are the fees you pay once, when the LLC comes into existence. A couple of optional filings often happen around the same time.

1. LLC Formation Filing Fee ($50 - Mandatory)

The Articles of Organization (Form CSCL/CD-700) is the document that legally creates your Michigan LLC. You file it with the Corporations Division of LARA, either online or by mail. The base fee is $50, nonrefundable, and your LLC doesn't legally exist until LARA approves the filing.

Standard processing runs 2 to 4 weeks. Michigan offers four paid tiers if you need it faster, each one stacked on top of that base fee.

• 24-hour delivery: $50
• Same-day delivery, in by 1 p.m.: $100
• 2-hour delivery, in by 3 p.m.: $500
• 1-hour delivery, in by 4 p.m.: $1,000

2. Registered Agent Service ($0 Self / $80 to $300 - Optional)

Michigan law requires every LLC to maintain a resident agent with a registered office in the state [1]. The agent needs a physical Michigan street address, not a P.O. box, and has to be reachable during business hours to receive legal documents on the LLC's behalf.

You can name yourself, another member, or anyone else who meets those requirements at no cost. Hiring a registered agent service in Michigan instead runs $80 to $300 a year, depending on the provider. That fee buys you privacy, plus reliable coverage on days you're away from that address during business hours.

3. Name Reservation ($25 - Optional)

You can lock down your business name before you're ready to file. File an Application for Reservation of Name (Form CSCL/CD-540) with the Corporations Division. It costs $25.

That $25 holds the name through the end of the sixth calendar month after the month you file. No one else can register it during that window. Check that the name is available and meets Michigan's naming rules before you reserve it. A rejected name still costs the filing fee.

Expenses Following the Approval of Your LLC

The one-time costs above cover formation itself. Good standing afterward comes with its own calendar of dates and fees. Below is the full list of what those recurring costs look like.

1. Annual Statement ($25 - Mandatory)

Every Michigan LLC files an Annual Statement and pays a $25 fee each year by February 15. LLCs formed after September 30 skip the Annual Statement due the following February 15 and file for the first time a year later.

Miss the deadline and LARA adds a flat $50 late penalty on top of the $25 fee. Miss it two years in a row and LARA sends formal notice. From there, the LLC has 60 days to catch up on every unfiled statement and fee before it's officially not in good standing [2].

2. State Taxes (4.25% Individual Rate - Mandatory if Applicable)

A Michigan LLC is a pass-through entity by default. The LLC itself doesn't pay a separate state entity-level tax. Profits flow straight through to each member's personal return. Members report their share of LLC income on their Michigan individual income tax return, at the confirmed 2026 flat rate of 4.25%.

Most single-member and multi-member LLCs have no separate state business return to file beyond the members' personal returns. Your tax setup still depends on income level and how you plan to distribute profits. Confirm your specific situation with a Michigan-licensed CPA before locking in any elections.

3. Sales Tax License ($0 - Mandatory if Applicable)

A Michigan LLC that sells taxable goods or services needs a sales tax license first. Get it from the Michigan Department of Treasury before your first taxable sale. There's no fee for the license itself.

Register through Michigan Treasury Online (MTO). Online registration is usually done in minutes. Mailing in Form 518 instead takes 4 to 6 weeks.

4. Business License Requirements (Varies - Mandatory if Applicable)

Michigan doesn't issue one general business license that covers every LLC. Whether you need a license, and what it costs, depends on your industry and where you operate.

A licensed profession like a medical practice, a contractor, or a restaurant each answers to a different licensing body. Some fall under the state, through the Bureau of Professional Licensing. Others fall under the county or city instead. Check what applies to your field before you start operating.

Optional Costs Worth Knowing About

Nothing below is required to keep a Michigan LLC in good standing. Each one solves a specific problem when it comes up.

1. Certificate of Assumed Name / DBA ($25 - Optional)

A DBA, or "doing business as" name, lets your LLC operate under a name other than its legal registered name. It's a public notice telling customers and third parties what name you're trading under. You'd only file it if you plan to operate or advertise under something other than your LLC's legal name.

File the Certificate of Assumed Name (Form CSCL/CD-541) with LARA's Corporations Division for $25. Once approved, that's the name you can legally advertise and sign contracts under.

2. Certificate of Good Standing ($50 - Optional but Recommended)

A Certificate of Good Standing from LARA confirms your LLC is compliant with state regulations and current on its Annual Statement filings. It costs $50 for the original document, including any amendments.

Banks, lenders, and larger business partners often ask for one before opening an account, extending financing, or signing a contract. Order it early. Waiting until someone asks costs you time you don't have.

3. Certified Document Copies ($16 Plus $1 per Page - Optional but Recommended)

Certified copies of your LLC's filed documents cost $16 for the first six pages. Add $1 for each page after that. Expedited processing adds 25% of the total cost.

Having certified copies on hand saves scrambling later. A legal or financial situation can come up fast, and someone will want official proof of your filing.

4. General Liability Insurance ($400 to $1,500 per Year - Optional)

Michigan doesn't require general liability insurance for most industries, but it protects your LLC from customer injury claims, property damage disputes, and similar lawsuits. Defending against a claim isn't cheap. That's true even when the claim turns out to be groundless.

Expect to pay $400 to $1,500 a year. The exact cost depends on your industry, coverage limits, and location. Businesses that deal with customers face-to-face, like contractors, usually pay more than an online-only consulting business.

5. Operating Agreement ($0 Template / $100 to $1,000+ Attorney - Optional)

Michigan doesn't require an operating agreement, and it isn't filed with the state. Even so, it's one of the more useful documents your LLC can have. It spells out voting rights, profit and loss sharing, and what happens if a member leaves.

Write your own for free using a standard template (linked in the table above). Or hire a formation service or attorney to draft one for $100 to $1,000 or more. That cost tracks the number of members involved and how much detail the ownership terms need to spell out.

6. Employer Identification Number ($0 - Optional, but Recommended)

An EIN is your LLC's federal tax ID number. You'll need one to open a business bank account, hire employees, or apply for business credit.

Get one directly from the IRS at no cost. Some formation services charge $50 to $100 to handle it for you, which isn't necessary since the IRS application takes a few minutes online.

FAQs

References:

1. https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-4207
2. https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-4207a