How to Form an LLC in Michigan

You might decide to create a limited liability company for business or estate planning purposes. But what steps do you need to follow to form an LLC in Michigan?

Choose a Name for Your LLC

First, you must choose a name for your LLC. In Michigan, LLC names must include “LLC” or “L.L.C.” Furthermore, you cannot pick a name already used by a Michigan LLC. You can check the Michigan Department of Licensing and Regulatory Affairs website, which allows you to search for existing LLCs by name. Michigan allows parties to reserve a name for an LLC before forming the company with the Corporations Division.

When choosing a name for your LLC, you may also consider trademark implications if you intend to use your LLC to conduct business. You can conduct an internet search to see if other companies use the name. A unique name can help your business stand out. However, picking a fanciful name might harm your business’s reputation, depending on your industry. 

Appoint a Resident Agent

Michigan requires LLCs to have a resident agent (also known as a registered agent in other states). A Michigan resident or a business entity authorized to do business in Michigan can serve as a resident agent if they have a physical address in Michigan. In that role, the individual or company can accept deliveries of legal documents on behalf of the LLC, such as court filings and other official documents. 

File Articles of Organization

Establishing an LLC requires you to file articles of organization with the Michigan Corporations Division. The Division’s website has templates for articles of organization. The articles must include specific information, including the company’s name, the name and address of the resident agent, and the company’s business purpose. An LLC can choose a broad business purpose, including “any business purpose for which a party can form an LLC in Michigan.” The state charges a filing fee for articles of organization, which you can file online, by mail, or in person at the Corporations Division’s office. 

Create an Operating Agreement

Although Michigan does not require LLCs to have operating agreements, most companies, including single-member LLCs, can benefit from having one. An operating agreement serves as the governance document for the LLC, outlining the company’s ownership, determining who will govern the LLC’s operations, establishing voting rights, and creating procedures for distributing profits and losses to the LLC’s members.

Obtain an EIN 

All LLCs must obtain an employer identification number (EIN) from the IRS, even if the LLC has no employees. An EIN serves as the tax identification number for the LLC if it files tax returns. Furthermore, you will need an EIN to open a bank account for the LLC or to hire employees and collect and remit payroll taxes. 

Comply with Other State and Local Requirements

Finally, your LLC may need to comply with other state and local regulations or laws, depending on what you use the LLC for or the industry in which it conducts business. For example, you may need local business licenses or permits to engage in business in specific industries or to operate a physical location. You may also have to register the LLC with the Michigan Department of Treasury to pay state taxes, such as sales tax, use tax, and unemployment insurance. If your LLC has employees, state law will also require you to obtain workers’ compensation coverage. 

Contact Our Firm Today for Assistance

When you need to establish a limited liability company, an attorney from Bingham Legal Group PC can help. Contact our firm today for an initial consultation with our legal team to learn more about the process of forming a Michigan LLC.