How to File an LLC in Michigan: A Comprehensive Guide
Forming a Limited Liability Company (LLC) in Michigan can be a significant step towards establishing a solid business foundation. This guide will walk you through the process, ensuring you have all the necessary information to successfully file your LLC.
Choosing a Name for Your LLC
Your LLC’s name is one of the first things you’ll need to decide. Here are some key points to consider:
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Ensure your chosen name is unique and not already in use by another business in Michigan.
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Include the words “Limited Liability Company,” “LLC,” or “L.L.C.” in your name.
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Check the Michigan Department of Licensing and Regulatory Affairs (LARA) business name database for availability.
Preparing the Articles of Organization
The Articles of Organization is a legal document that officially creates your LLC. Here’s what you need to include:
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Name of the LLC
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Address of the LLC’s principal place of business
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Name and address of the registered agent
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Management structure (member-managed or manager-managed)
Make sure to fill out the form accurately and completely. You can find the Articles of Organization form on the LARA website.
Choosing a Registered Agent
A registered agent is a person or entity responsible for receiving legal documents on behalf of your LLC. Here’s what you need to know:
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The registered agent must have a physical address in Michigan.
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The registered agent must be available during normal business hours to receive documents.
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You can be your own registered agent, or you can hire a professional service.
Filing the Articles of Organization
Once you have completed the Articles of Organization and chosen a registered agent, it’s time to file the document with LARA. Here’s how to do it:
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Online: Visit the LARA website and complete the online filing process. There is a fee of $50.
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By Mail: Print the completed Articles of Organization form, mail it to LARA, and include the $50 filing fee.
After filing, LARA will send you a confirmation of filing, which you should keep on file.
Obtaining an Employer Identification Number (EIN)
An EIN is a unique nine-digit number assigned to your LLC by the IRS. It’s used for tax purposes and to open a business bank account. Here’s how to get one:
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Apply online through the IRS website. It’s free and takes about 5 minutes.
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Call the IRS at 1-800-829-4933 to apply over the phone. There is a $10 fee.
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Complete Form SS-4 and mail it to the IRS. There is no fee, but processing can take several weeks.
Understanding Michigan LLC Taxes
LLCs in Michigan are subject to both state and federal taxes. Here’s a brief overview:
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State Income Tax: Michigan LLCs must file an annual Michigan Business Tax return.
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Federal Income Tax: LLCs can choose to be taxed as a partnership, S corporation, or C corporation.
It’s important to consult with a tax professional to determine the best tax structure for your LLC.
Compliance and Ongoing Requirements
Once your LLC is formed, there are ongoing compliance and filing requirements to maintain your business status:
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File an annual report with LARA by February 28th of each year. There is a $50 filing fee.
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Keep detailed records of your business transactions and finances.
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Hold annual meetings and record minutes if your LLC is member-managed.
Staying compliant with these requirements will help ensure the long-term success of your LLC
