How to Start a Business in Michigan (2026 Guide)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

To start a business in Michigan you pick a structure, file with the Corporations Division of LARA — for an LLC that is the Articles of Organization, Form CSCL/CD-700, for a $50 filing fee — appoint a Michigan resident agent, get a free federal EIN, register for Michigan taxes with Treasury, and then file a $25 annual statement each February 15.

Step 1: Choose a Business Structure

Everything downstream — what you file, what you pay, and what you personally risk — follows from the structure you pick. A sole proprietorship requires no state formation filing at all, but it gives you no liability separation: business debts are your debts. A general partnership works the same way with more than one owner. A limited liability company is the default choice for most new Michigan small businesses because it separates personal assets from business liabilities while remaining a pass-through for tax purposes. A corporation makes sense when you plan to issue stock to outside investors or want a formal board structure.

Michigan LLCs are governed by the Michigan Limited Liability Company Act, Act 23 of 1993. The act sets out what the articles must contain, the resident agent duty, and the default rules that apply when your operating agreement is silent. Because those defaults are rarely what multi-member businesses actually want, put an operating agreement in place even though Michigan does not require you to file one.

Step 2: Pick and Clear a Name

Michigan requires an LLC name to be distinguishable on the records of the Corporations Division and to include an entity identifier such as "Limited Liability Company," "L.L.C.," or "LLC." Start with the Michigan business entity search to see whether the name is taken. Availability on that register is only a clearance to file, though — it is not a trademark clearance. Before you invest in signage, packaging, or a domain, also search the federal register and consider a Michigan trademark filing or a federal trademark registration.

If you want to operate under a public name different from the registered entity name, Michigan handles that with an assumed name filing — see Michigan DBA filing. An assumed name gives you the right to use the name on invoices, signs, and bank accounts; it does not create exclusive rights the way a trademark does.

Step 3: File the Articles of Organization

An LLC comes into existence when LARA accepts the Articles of Organization, Form CSCL/CD-700. The filing fee is $50. The form is short: the company name, the purpose, the duration if it is not perpetual, the resident agent's name, and the registered office address in Michigan. You can file online through the Corporations Division or mail the form. Expedited handling is available for an additional fee on a separate expedite request, ranging from same-day-tier service upward, which is worth it only when a closing or a bank appointment depends on the certificate.

Corporations file Articles of Incorporation instead, and nonprofits use a different form again. For the LLC path, the details of what goes on each line are covered in Michigan articles of organization, and the accepted, stamped filing serves the role that a certificate of formation plays in other states.

Step 4: Appoint a Michigan Resident Agent

Michigan uses the term resident agent. Every LLC and corporation on the register must continuously maintain one, along with a registered office at a Michigan street address where process can be served during business hours. The agent may be an individual who resides in Michigan or an entity authorized to transact business in the state, and the agent's address becomes part of the public record.

You can act as your own agent if you live in Michigan and are comfortable publishing your address, but many owners hire a commercial registered agent for privacy and reliability, especially if they travel or work from client sites. See Michigan resident agent requirements for the details, and update the appointment immediately if the agent or address changes — missed service of process is how default judgments happen.

Step 5: Get a Federal EIN

An Employer Identification Number is the business equivalent of a Social Security number, and the IRS issues it free of charge. You need one if you will have employees, if the LLC has more than one member, if you elect corporate or S-corporation taxation, or if you owe certain excise taxes. Even a single-member LLC with no employees usually wants an EIN, because banks generally ask for one to open a business account and because using an EIN keeps your Social Security number off vendor paperwork and Forms W-9.

The fastest route is the IRS online application, which validates your answers and issues the number at the end of the session. Applicants without a US taxpayer identification number, and anyone who prefers paper, use Form SS-4. See how to get an EIN for the full walkthrough and EIN in Michigan for the state-specific sequencing. Never pay a third-party site for an EIN.

Step 6: Register for Michigan Taxes

Business tax accounts come from the Michigan Department of Treasury, not from LARA. Register before you make your first taxable sale or run your first payroll. The common accounts are sales tax (Michigan's state rate is 6%), use tax, and withholding for employee wages. Retailers receive a sales tax license, which must be displayed and renewed. Employers also register with the Michigan Unemployment Insurance Agency and carry workers' compensation coverage.

On income tax, a standard Michigan LLC is a pass-through with no franchise tax: the entity itself owes no Michigan business income tax, and the members report their shares on their Michigan individual returns. An LLC that elects C-corporation treatment falls under the Michigan Corporate Income Tax instead. Michigan also offers an elective flow-through entity tax, which some multi-member businesses use for federal deduction reasons. For how the filings fit together, see Michigan LLC tax filing and the national business tax hub, and weigh S-corp versus LLC once profits are consistent.

Step 7: Licenses, Permits, and Insurance

Michigan does not issue one general statewide business license. Instead, licensing is layered. Occupational licensing runs through LARA for the trades and professions it regulates — builders, cosmetologists, health professions, and many others. Activity licensing comes from the relevant department: food service from the health department, liquor from the Liquor Control Commission, and so on. Local requirements — zoning approval, a certificate of occupancy, a sign permit, a home-occupation permit — come from your city, township, or county, and are the layer most often overlooked by owners who assume the state filing was the last step. Start with Michigan business licenses.

Step 8: Stay in Good Standing

Michigan's ongoing burden is light but real. The recurring filing is the annual statement, Form CSCL/CD-2700, due to LARA by February 15 each year with a $25 fee. An LLC formed after September 30 skips the first February 15 deadline. Beyond that, keep your resident agent current, file and pay your Treasury accounts on schedule, and keep company money separate from personal money — commingling is the fastest way to undermine the liability protection you formed the LLC to get.

Keep a simple compliance calendar: February 15 for the annual statement, your sales tax and withholding due dates, quarterly estimated payments for the owners, and the federal return deadline. See Michigan annual statement requirements for the reporting detail. If the business ends, close it deliberately — file the dissolution, settle tax accounts, and notify creditors — using how to dissolve an LLC in Michigan rather than simply abandoning the registration, which leaves obligations running against your name.

Frequently Asked Questions

How much does it cost to start a business in Michigan?

The state fee to form a Michigan LLC is $50 for the Articles of Organization, Form CSCL/CD-700, filed with LARA. A federal EIN is free. After that, the recurring state cost is the $25 annual statement due February 15. Optional items such as name reservation, expedited service, and a commercial resident agent cost extra.

What form starts an LLC in Michigan?

Form CSCL/CD-700, the Articles of Organization, filed with the Corporations, Securities and Commercial Licensing Bureau at LARA. The form lists the company name, the purpose, the duration, and the resident agent and registered office. Michigan accepts it online or by mail with the $50 filing fee.

Does Michigan require a resident agent?

Yes. Every Michigan LLC and corporation must continuously maintain a resident agent with a registered office at a Michigan street address. The agent accepts service of process and state notices. You can act as your own agent if you have a qualifying Michigan address, or hire a commercial registered agent.

When is the Michigan annual statement due?

Michigan LLCs file an annual statement, Form CSCL/CD-2700, with LARA by February 15 each year, with a $25 fee. An LLC formed after September 30 skips the first February 15 deadline. Missing the statement repeatedly can lead the state to place the company out of good standing.

Does a Michigan LLC pay franchise tax?

No. Michigan does not impose a franchise tax on LLCs. A standard LLC is a pass-through, so profit is reported by the members on their own returns and taxed at the Michigan individual income tax rate. An LLC that elects to be taxed as a C corporation is subject to the Michigan Corporate Income Tax.

Do I need a general business license in Michigan?

Michigan does not issue a single statewide general business license. What you need depends on your activity: many occupations are licensed by LARA, retailers need a sales tax license from Treasury, and cities and counties impose their own permits and zoning approvals.

Related

• How to form an LLC (national guide)
• How to form an LLC in Michigan
• How much does a Michigan LLC cost?
• Michigan resident agent requirements
• How to get an EIN
• Business license overview
• What is an LLC?
• S-corp vs LLC
• How to start a business in Illinois (sibling)
• How to start a business in Indiana (sibling)

Sources

1. Michigan LARA, Corporations Division — Filing Fees schedule ($50 Articles of Organization; $25 annual statement).
2. Michigan LARA — Limited Liability Company Forms (Form CSCL/CD-700).
3. Michigan LARA — LLC Annual Filings (annual statement due February 15).
4. Michigan LARA — Business Entity Search (name availability).
5. Michigan LARA — Corporations Division FAQ.
6. Michigan Legislature — Michigan Limited Liability Company Act, Act 23 of 1993 (resident agent and registered office).
7. Michigan Legislature — MCL 450.4204 (contents of the articles of organization).
8. Michigan Department of Treasury — Starting a New Business (tax registration).
9. Michigan Department of Treasury — Sales and Use Tax (6% rate; sales tax license).
10. Michigan Department of Treasury — Corporate Income Tax (entities taxed as C corporations).
11. Michigan Department of Treasury — Flow-Through Entity Tax.
12. IRS — Get an Employer Identification Number (free EIN).
13. IRS — Limited Liability Company (LLC).
14. IRS — Business Structures.
15. U.S. Small Business Administration — Register Your Business.

LegalGlass provides general information for educational purposes and is not a law firm and is not legal advice or a substitute for advice from a licensed attorney or tax professional. Laws, fees, forms, and deadlines change; verify current requirements with Michigan LARA and the Michigan Department of Treasury before acting.