CobaltProsper

How to start an LLC in Michigan

By Brent Chudoba, editor Updated

Forming an LLC in Michigan costs $50 to file the Articles of Organization (Form CSCL/CD-700 for Domestic LLC) with the Michigan Secretary of State. After that you file an annual report of $25. Michigan charges no franchise tax on a standard LLC. Annual Statement (Form CSCL/CD-2700) filing fee of $25 due by February 15 each year; late filing carries a $50 penalty and can lead to loss of good standing. As of June 23, 2025, LARA's MiBusiness Registry Portal (MiBRP) is online-only for annual statement/report filings, paper filings are no longer accepted.

How much does it cost to start an LLC in Michigan?

Michigan LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization (Form CSCL/CD-700 for Domestic LLC))$50
Annual report$25/year
Franchise or business taxNone
Registered agentRequired

Source: Michigan Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Michigan?

  1. Name your LLC. Pick a name that is available and meets Michigan naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Michigan requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization (Form CSCL/CD-700 for Domestic LLC). Submit it to the Michigan Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Michigan charges $25 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Michigan have a franchise tax on an LLC?

No. Michigan Business Tax was replaced by the Corporate Income Tax effective 2012. LLCs are generally not subject to a separate franchise tax; taxed as pass-through entities or under federal check-the-box rules.

How is an LLC taxed in Michigan?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Michigan has a state individual income tax with a top rate of 4.25% (flat brackets), so those profits are taxed on your Michigan return on top of federal tax. Flat tax of 4.25% applied uniformly to all individual and fiduciary income. Rate is set by MCL 206.51 and is subject to an annual formulaic reduction (only) when general fund revenue growth outpaces inflation; Treasury determined no reduction applied for the 2026 tax year, so the rate holds at 4.25%.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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