Create an LLC in Michigan in 5 Simple Steps
Step 1: Give your Michigan LLC a name.
Step 2: Select a Resident Agent
Step 3: Submit the Articles of Organization; Step 4: Draft an Operating Agreement
Step 5: Obtain an EIN
It is simple to form an LLC in Michigan.
To establish a Michigan LLC, you must fill out and submit the Articles of Organization with the Michigan Corporations Division, which costs $50. You may apply in person, online, or by mail. The Articles of Organization are the legal documents that establish your Michigan LLC (Limited Liability Company).
STEP 1: Give your Michigan LLC a name.
The first and most significant step in organizing an LLC in Michigan is selecting a company name. Make certain that your company name conforms with Michigan naming regulations and criteria, and that it is readily searched by prospective business customers.
1. Follow the Michigan LLC naming guidelines:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra legal documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
2. Does the name exist in Michigan? To ensure that the company name you desire isn’t already in use, do an online LLC name search with the Michigan Department of Licensing and Regulatory Affairs (LARA).
3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may want to purchase the URL to prevent others from gaining it.
STEP 2: Select an LLC Resident Agent in Michigan.
You must designate and have a resident agent for your Michigan LLC. In other states, a resident agent is known as a registered agent.
What exactly is a resident agent? A resident agent is a person or corporate entity that receives vital tax forms, legal papers, lawsuit notices, and official government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who may work as a resident agent? A resident agent must be a Michigan resident or a firm, such as a registered agent service, that is permitted to do business in Michigan. You may choose someone from your organization, even yourself.
STEP 3: File Your Articles of Organization for Your Michigan LLC
Form 700 – Articles of Organization must be filed with the Michigan Corporations Division to register your Michigan LLC. You may submit your application online, via mail, or in person.
STEP 4: Draft an Operating Agreement for a Michigan LLC.
An operating agreement is not necessary for an LLC in Michigan, although it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
STEP 5: Obtain an EIN for Your Michigan Limited Liability Company
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security Number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.