Michigan LLC Annual Statement and Taxes (2026)
Every Michigan LLC files an annual statement (Form CSCL/CD-2700) with LARA for a $25 fee by February 15 each year. Michigan charges no franchise tax on LLCs; income flows through to owners at the 4.25% individual rate for 2026, while a 6% sales tax or the 6% Corporate Income Tax may apply depending on the LLC's activity and tax classification.
Quick Answer
- Annual filing
- Annual statement, Form CSCL/CD-2700, to LARA
- Fee
- $25 per year
- Due date
- February 15 (skips first Feb 15 if formed after Sept 30)
- Franchise tax
- None on LLCs
- Owner income tax
- 4.25% Michigan individual rate (2026)
- Other taxes
- 6% sales/use; 6% Corporate Income Tax if taxed as a C corp
What the Michigan Annual Statement Is
The Michigan annual statement is the yearly filing every LLC makes with the LARA Corporations Division to keep its record current. It is Michigan's version of what other states call an "annual report," and it is filed on Form CSCL/CD-2700. The statement confirms the LLC's resident agent and registered office; it is not a tax return and does not report income. The fee is $25. Filing it on time keeps the LLC in good standing with the state. This is separate from any tax the LLC owes the Michigan Department of Treasury.
It helps to keep two systems straight. The annual statement is an entity-maintenance filing with LARA, the corporate registry: it costs a flat $25, is due the same date every year, and reports only the agent and office. Taxes are a separate obligation to the Treasury, the state's revenue agency: they depend on what the LLC earns, sells, and pays out, and they are filed on their own forms and schedules. Owners sometimes conflate the two and assume the $25 statement satisfies their tax duties, or that paying taxes covers the statement. It does not - a Michigan LLC has to handle both the LARA statement and any Treasury taxes that apply.
Due Date and the First-Year Rule
The Michigan annual statement is due February 15 every year. LARA mails a pre-printed statement (Form CSCL/CD-2700) to the LLC's resident agent ahead of the deadline, but the obligation to file stands whether or not the notice arrives. One first-year rule matters: an LLC formed after September 30 is not required to file the annual statement on the February 15 immediately following its formation. A company organized in October 2026, for example, files its first annual statement by February 15, 2028, not 2027. Track the date yourself rather than relying on the mailed reminder.
How to File the Annual Statement
Filing the Michigan annual statement is straightforward. You can file online through the Corporations Online Filing System, which is the fastest method, or return the pre-printed Form CSCL/CD-2700 by mail with payment. Confirm the resident agent and registered office are correct before submitting; if they changed, the annual statement updates the record. Pay the $25 fee by card online or by check by mail. Keep the filing confirmation with your company records. To review the agent rules, see Michigan resident agent requirements.
The whole task usually takes only a few minutes, because the statement asks for so little. There is no financial data, no member list beyond the agent, and no fee variation by size - every LLC pays the same $25. If nothing about the LLC changed during the year, you are essentially confirming the existing record and paying the fee. The one thing to watch is accuracy of the resident agent and registered office: because those are the only substantive fields, an error there is the error most likely to matter, so verify the street address and agent name are current before you submit.
What Happens If You Miss It
Missing the Michigan annual statement puts the LLC on a path to administrative dissolution. If an LLC fails to file its annual statement for two consecutive years, LARA places it out of good standing and administratively dissolves it. A dissolved LLC cannot maintain a lawsuit in Michigan courts and loses the exclusive right to its name. To restore it, the LLC files a Certificate of Restoration of Good Standing for $50 plus $25 for each delinquent annual statement. Filing on time each February 15 avoids this entirely. To close deliberately instead, see how to dissolve an LLC in Michigan.
The two-year clock makes it easy to drift into dissolution without noticing. An LLC that misses the February 15 deadline is not immediately dissolved, but it is no longer in good standing, which can surface at the worst moment - when a bank pulls the LLC's status for a loan, or when the LLC tries to file a lawsuit. Rather than tracking the grace period, treat February 15 as a hard annual deadline and file early. If you already fell behind, the restoration process brings the LLC current, but paying $25 on time each year is far cheaper than the $50 restoration fee plus $25 for every year you skipped.
How a Michigan LLC Is Taxed
A Michigan LLC's taxes depend on its federal classification, all administered by the Michigan Department of Treasury. By default, the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so the income "flows through" and members pay Michigan individual income tax at 4.25% for the 2026 tax year on their shares. Michigan does not impose a separate annual franchise tax on LLCs, so the $25 annual statement is the only routine LARA charge. An LLC can also elect to be taxed as a corporation or an S corporation, which changes how its income is taxed.
Classification drives everything downstream. As a default pass-through, the LLC files an informational return where required but pays no entity-level Michigan income tax; the members report their shares and pay the 4.25% individual rate. If the LLC elects C-corporation treatment, it becomes a taxpayer in its own right and owes the 6% Corporate Income Tax on its apportioned base, with a second layer of tax when profits are distributed. An S-corporation election keeps pass-through treatment while changing how owners draw compensation. Because the choice affects both federal and Michigan liability, most owners settle classification with a tax professional before the first return is due rather than after.
Michigan Tax Rates for LLCs (2026)
The table summarizes the Michigan tax rates that can apply to an LLC, verified against the Michigan Department of Treasury. Which ones apply depends on the LLC's activity and classification.
| Tax | Rate (2026) | Applies to | Agency |
|---|---|---|---|
| Individual income tax (pass-through) | 4.25% | Members' share of LLC income | Treasury |
| Sales tax | 6% | Taxable retail sales | Treasury |
| Use tax | 6% | Untaxed purchases used in Michigan | Treasury |
| Corporate Income Tax | 6% | LLCs taxed as C corporations | Treasury |
| Flow-Through Entity Tax (elective) | 4.25% | Electing entities, at owner level via credit | Treasury |
Register for these taxes on Form 518 or through Michigan Treasury Online. There is no state fee to register. See Michigan LLC cost for how these fit the total picture.
Sales, Use, and Withholding Registration
If a Michigan LLC sells taxable goods or certain services, it must register for and collect the 6% sales tax before making sales. Use tax, also 6%, applies to taxable items bought without paying sales tax and used in Michigan. If the LLC has employees, it must register for income tax withholding as well. Register for all of these on the Michigan Business Taxes Registration (Form 518) or through Michigan Treasury Online, then file returns on the schedule the Treasury assigns. These are separate from the LARA annual statement. Get a federal EIN first, since the tax registration requires it.
The Flow-Through Entity Tax Option
Michigan's Flow-Through Entity Tax is an elective, entity-level tax that a qualifying LLC can choose to pay. When an LLC elects it, the LLC pays Michigan tax on its business income at the individual income tax rate - 4.25% for the 2026 tax year - and the members claim a refundable credit for the tax the entity paid. The election is often used to work around the federal cap on the state-and-local-tax deduction. The election and payments are made through Michigan Treasury Online. Because it interacts with each member's federal return, most owners weigh it with a CPA. See S-corp vs LLC for how entity choice affects taxes generally.
The election is annual and comes with its own deadlines and estimated-payment rules, so it is a planning decision rather than something to attempt at the last minute. It tends to benefit LLCs with meaningful net income whose owners itemize and are constrained by the federal deduction cap; it offers little to an LLC with modest income or losses. Because the entity pays the tax and the members claim a credit, the paperwork touches both the LLC's Michigan return and each member's individual return, which is why the flow-through entity tax is usually coordinated with a tax adviser before the election is made.
Frequently Asked Questions
Does a Michigan LLC file an annual report?
Yes. Michigan calls it an annual statement (Form CSCL/CD-2700), filed with LARA for a $25 fee by February 15 each year. An LLC formed after September 30 is not required to file the following February 15.
How much is the Michigan LLC annual statement?
$25, paid to the LARA Corporations Division. You can file it online through the Corporations Online Filing System. Michigan adds no separate annual franchise tax on LLCs.
When is the Michigan LLC annual statement due?
February 15 each year. An LLC formed after September 30 skips the February 15 immediately following formation and files in the next cycle.
What taxes does a Michigan LLC pay?
By default a pass-through, so members pay Michigan individual income tax at 4.25% for 2026. A 6% sales tax applies to taxable sales, and an LLC taxed as a C corporation pays the 6% Corporate Income Tax.
What is the Michigan flow-through entity tax?
An elective entity-level tax at the individual income tax rate - 4.25% for 2026 - with members claiming a refundable credit for the tax the entity paid.
Related
- Business tax overview (cluster hub)
- How to form an LLC in Michigan
- Michigan LLC cost and filing fees
- Michigan resident agent requirements
- How to dissolve an LLC in Michigan
- How to get an EIN
- Business license in Michigan
Sources
- Michigan LARA - LLC Annual Filings ($25 annual statement; February 15; first-year rule).
- Michigan LARA - Annual Reports and Annual Statements.
- Michigan LARA - Restore My LLC ($50 restoration; $25 per delinquent statement).
- Michigan LARA - Limited Liability Company Forms (Form CSCL/CD-2700).
- Michigan Treasury - Sales and Use Taxes (6% rate).
- Michigan Treasury - Corporate Tax Base (6% Corporate Income Tax).
- Michigan Treasury - Flow-Through Entity Tax (elective; individual rate; refundable credit).
- Michigan Treasury - Flow-Through Entity Tax Rate Notice (4.25% rate).
- Michigan Treasury - 2026 Individual Income Tax Rate (4.25%).
- Michigan Treasury - New Business Registration (Form 518; Michigan Treasury Online).
- IRS - Limited Liability Company (LLC) (default federal classification).
- Cornell LII - 26 CFR 301.7701-3 (entity classification election).
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with LARA and the Michigan Department of Treasury before acting.